Skip to content

DOL Fiduciary News: August 16, 2016

Please Note:

These links will take you directly to the homepage of the website that features the article.

To reach the article directly, copy and paste the article title into the search feature on the homepage of the publication website.

Hundreds of thousands of 401(k)s up for grabs after DOL fiduciary rule; August 15, 2016

If and when the U.S. Department of Labor’s fiduciary rule survives several legal challenges, the small and midsize 401(k) plan market stands to be revolutionized.

The rule requires all advisors to 401(k) plans with less than $50 million in assets to serve as fiduciaries. Under the Employee Retirement Income Security Act, all plan sponsors assume fiduciary obligations upon offering a defined contribution strategy, irrespective of plan size.

But those sponsors were not required to hire fiduciary advisors prior to finalization of the Labor Department's rule.

Two B-Ds Expect Ominous DOL Effects; Others Neutral 

Financial Advisor; August 15, 2016

So, is the DOL rule a non-event, or not?

The Department of Labor’s fiduciary rule will either have an immaterial impact on brokerage firms, or it will limit the products and services they can offer and increase legal risks, according to the firms’ latest SEC filings.

The second-quarter earnings reports of the public brokerage firms released this month contain many of the firms’ first disclosures about the impacts from the final DOL rule, which was released on April 8. The conclusions are a decided mixed bag.

Even popular changes to DOL fiduciary rule are proving problematic

InvestmentNews; Aug 15, 2016 @ 11:21 am

A handful of changes the financial advice industry praised when the final DOL fiduciary rule on retirement advice came out in April are turning out to be less advantageous than expected.

For one, the rule that allows advisers to use product revenue within the best-interest contract exemption has become difficult when it comes to ensuring there's no conflict of interest for the adviser.

What About Life Insurance in the DOL’s Fiduciary Rule?

InsuranceNewNet; August 2016 print edition

Roy Cranman still has not heard a clear answer to his fundamental question despite the nearly nonstop discussion about the Department of Labor’s fiduciary rule: What about life insurance?

“Everything I’ve read is focused on annuities,” said Cranman, an estate planner based in Atlanta.

3 FSI Tools to Help Weather the DOL Rule 

Financial Advisor; August 15, 2016

Three new fiduciary rule aids ( were unveiled by the Financial Services Institute Monday. They include:

  • A negative consent letter, which allows advisors to continue to service existing accounts without clients needing to sign new documents.
  • An IRA rollover form, which is useful for moving customer funds to an advisory firm from an IRA or 401(k) plan.

A disclosure website template, a model site map of the required disclosures aimed to simplify building the required website. 

Did you accomplish the goal of your visit to our site?

Yes No