DOL Fiduciary News: March 21, 2017
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Fitch: DOL Rule Has Driven Enduring Change for US Life Insurers
20 MAR 2017 12:07 PM EST
Fitch Ratings -- Chicago/New York -- 20 March 2017: A significant portion of the changes implemented by life insurers to prepare for new US Department of Labor (DOL) regulations – collectively referred to as the "Conflict of Interest Rule" or "Fiduciary Rule" – will remain in place, regardless of the outcome of a recently announced delay and review of the impact of the new rules, says Fitch Ratings.
US life insurance companies have invested meaningful resources over the past year in preparation for the implementation of the new regulations, which were made public last April. The Fiduciary Rule, which was due to become applicable on April 10, expands the definition of fiduciary investment advice for advisors selling certain retirement savings products into qualified retirement accounts. Insurers selling affected products have made various changes to their distribution strategies and compensation structures and have developed new products that comply with new exemption rules.
(https://www.fitchratings.com)
Financial Industry Leaves the Table by Skipping DOL Rule Comments [IRI Marketing Summit]
InsuranceNewsNet; March 201, 2017
CHICAGO -- The financial services industry is not doing itself any favors by failing to comment on the latest Department of Labor fiduciary rule proposals, a panel agreed during today's Insured Retirement Institute marketing conference.
To date, the majority of comments on a rule to delay and potentially amend the fiduciary rule are from pro-rule circles, said Hans Schemmel, director of individual retirement accounts and annuities for Pershing, a BNY Mellon Company.
(https://insurancenewsnet.com)
Advisors Cornered By Zombie DOL Rule [IRI Marketing Summit]
InsuranceNewsNet; March 20, 2017
CHICAGO -- The Department of Labor fiduciary rule was the obvious big topic in the room at the Insured Retirement Institute kicked off its 2017 marketing conference.
Don Moore, a broker-dealer in Greenbelt, Md., is scrambling hard to make the April 10 applicability date set by the DOL. Of course, that could change if the DOL follows through with a 60-day delay as the agency plans. That would move the applicability date to June 9.
Speculation is rampant that the DOL, as directed by President Donald J. Trump, will use the delay to strip the rule of its more onerous requirements. But in the meantime, folks like Moore need to have compliance systems ready to go.
(https://insurancenewsnet.com)