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Prohibited Transaction Exemption 2020-02: Registered Broker-Dealer Compliance Considerations

5/19/2021 2:00 PM EDT - 3:00 PM EDT
Webinar
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Overview

Who Should Watch

This Webinar is for insurance carriers, broker-dealers, advisers, and service providers to ERISA plans and IRAs. CXOs, senior leaders of insurance carriers, compliance, risk and legal professionals, distribution, marketing, and others financial professionals who need a high level overview of the change and what it actually may mean for your firms going forward.

This is a LIMRA/LOMA member benefit webinar. Registration is open to home/corporate office employees of LIMRA/LOMA member companies. Membership will be verified upon registration 

Highlights

The Department of Labor's Prohibited Transaction Exemption 2020-02, called Improving Investment Advice for Workers and Retirees, expands the definition of fiduciary advice under ERISA to recommendations about rollovers and IRA investments. It then provides an exemption, or exception, to the prohibited transaction rules in ERISA and the Internal Revenue Code, but with conditions. For insurance carriers, broker-dealers, and investment advisers that intend to utilize the Prohibited Transaction Exemption 2020-02, a heavy compliance burden lies ahead. Firms will need to develop a comprehensive process for measuring reasonable compensation and document how inherent conflicts of interest are mitigated. New changes in compliance programs, policies, and procedures must be in place by the end of the year (December 20, 2021). In some cases, it could mean a complete overhaul of your compliance platform and in your training and education program, including supervision practices.

Alternatively, insurance companies and agents may continue to rely on PTE 84-24, which provides an exemption for sales of insurance contracts and annuities. Commissions paid by the insurance company to agents are permissible under the exemption. Although this is a practical approach, the word on the street is the DOL may go back to the Obama era 84-24, which means fixed indexed and variable annuities would be taken out of 84-24. If so, they will likely have to fall under 2020-02, meaning insurance companies will have to sign on as co-fiduciaries, at least for insurance-only agents and brokers who sell fixed indexed annuities. That's a big deal.

We will cover all of these critical details and much more over this five-part webinar series.

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Presenters

Skip Edmonds
Head of Compliance and Regulatory Practice, LL Global

Skip Edmonds

Head of Compliance and Regulatory Practice, LL Global

In 2020, Skip Edmonds joined LL Global to lead its Compliance and Regulatory Services program. In this role, he is responsible for all aspects of LL Global’s Compliance and Regulatory Program. This includes product development, research, strategic networking, and the convening of member companies to resolve complex compliance and regulatory matters.  Edmonds also is responsible for leading the organization’s key strategic initiatives in the regulatory and compliance space, ensuring LL Global is positioned as a key resource for member companies.

With more than 25 years of experience, Edmonds has helped financial services companies strategically navigate the growing complexities in the regulatory space. Most recently, he held the position of chief compliance officer for Prudential’s Workplace Solutions Group, which is comprised of Prudential’s Retirement and  Group Insurance.  

Edmonds holds a Bachelor of Arts degree and a Master of Education, both from the University of Hartford. Edmonds also holds his Series 7 and 24 FINRA General Securities Principal registrations.

Khalif I. Ford
Corporate Counsel and Chief Legal Officer, Global Portfolio Solutions, Inc., Prudential Financial Inc.

Khalif I. Ford

Corporate Counsel and Chief Legal Officer, Global Portfolio Solutions, Inc., Prudential Financial Inc.

Khalif Ford provides counsel on legal and compliance considerations associated with retirement plan products and services. As a federal regulator at the Department of Labor, law firm associate, and in-house counsel in the financial services industry, Khalif has served as a subject matter expert and focused on providing pragmatic legal advice and solutions.

Edward K. Duch, III
Lead Counsel, Wealth Management, MassMutual

Edward K. Duch, III

Lead Counsel, Wealth Management, MassMutual

Ed Duch joined MassMutual in 2002 and currently serves as Lead Counsel, Wealth Management.  Ed provides legal support to MassMutual and its subsidiaries on issues relating to best interest and fiduciary rules, investment advisory services, securities product distribution, due diligence, compliance, ERISA and corporate governance.  Ed obtained his B.S. from Syracuse University (1999) and his J.D. from Boston University School of Law (2002).

Steven LaFore
Assistant General Counsel, Northwestern Mutual

Steven LaFore

Assistant General Counsel, Northwestern Mutual

Steve is Assistant General Counsel at Northwestern Mutual and Secretary of Northwestern Mutual Wealth Management Company.  He focuses on the investment advisory and broker-dealer business and, in particular, ERISA fiduciary products and services designed for plan sponsors.  Steve’s ERISA experience includes implementing a wide variety of DOL regulations managing DOL exams  He also specializes in securities and banking/trust law.  Steve has been at Northwestern Mutual for over 20 years and, before attending law school, worked as a 401(k)/ERISA plan administrator and relationship manager.  Steve graduated from Marquette Law School, cum laude, and has a BBA in finance from the University of Wisconsin – Madison and an MBA from Marquette University.  Steve plays guitar in a local cover band and enjoys riding his Harley.

Fred Reish
Partner, Drinker Biddle & Reath LLP

Fred Reish

Partner, Drinker Biddle & Reath LLP

is an attorney whose practice focuses on fiduciary responsibility, prohibited transactions, conflicts of interest and plan qualification and operation. He has been recognized as one of the “Legends” of the retirement industry by both PLANADVISER and PLANSPONSOR magazines. Fred has received awards for: the 401(k) Industry’s Most Influential Person by 401kWire; the Institutional Investor and PLANSPONSOR magazine Lifetime Achievement Awards; one of RIABiz’s 10 most influential individuals in the 401(k) industry affecting RIAs; Investment Advisor’s 25 Most Influential People by ThinkAdvisor; the IRS Commissioner’s Award and District Director’s Award; the Eidson Founder’s Award by ASPPA; and the ASPPA/Morningstar 401(k) Leadership Award. He has also received the Arizona State University Alumni Service Award. Fred currently serves on the CFP Board’s Public Policy Council and is a member of the CFP Board’s Standards Resource Commission. He has written more than 350 articles and four books about retirement plans. Fred co-chaired the IRS Los Angeles Benefits Conference for 10 years and served as a founding Co-Chair of the NAPA 401(k) Summit. He is a Trustee of Arizona State University and a member of the Board of the ASU Alumni Association.
Carolyn Clement
Associate Product Manager, LIMRA

Carolyn Clement

Associate Product Manager, LIMRA

Contact us to learn more:

Amanda Cristina

Senior Meeting Planner

LIMRA

(860) 298-3829

acristina@limra.com