DOL Fiduciary News: October 11, 2016
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.
Thrivent suit against DOL pits ERISA vs. Federal Arbitration Act
BenefitsPro.com; October 10, 2016
A sixth lawsuit against the Department of Labor, brought by Thrivent Financial for Lutherans, is not trying to block the fiduciary rule.
In fact, the lawsuit, unlike the other claims against the DOL, does not even challenge the “validity” of the rule, according to Thrivent’s complaint. Thrivent is a non-profit fraternal benefit society that provides financial services and insurance products to 2.5 million Christians across the country.
All Thrivent is asking of the U.S. District Court for the District of Minnesota is for relief from the provision of the rule’s Best Interest Contract Exemption that prohibits class-action waivers in the contracts.
DTCC to Launch New Fiduciary Insurance Profile Service
PLANADVISER; October 10, 2016
Depository Trust & Clearing Corporation (DTCC) is seeking regulatory approval for a new Insurance Profile solution that will facilitate annuity industry compliance with the U.S. Department of Labor (DOL) fiduciary rule.
According to DTCC, the Insurance Profile service provides carriers and distributors with a centralized, automated and standardized method to satisfy disclosure requirements under the significant disclosure and conflict of interest reforms.
A.M. BestTV: Fiduciary Rule Impacting Variable Annuities, Said A.M. Best Analyst
October 10, 2016 02:11 PM EDT
OLDWICK, N.J. -- (BUSINESS WIRE) -- In this A.M.BestTV episode, Edward Kohlberg, associate director, A.M. Best, said that the Department of Labor's looming fiduciary rule changes have a role in the recent shifting of annuity sales. Click on http://www.ambest.com/v.asp?v=annuities1016 to view the entire program.
A.M. Best recently released a report that looks at the position of the variable annuity market, which states that variable annuity sales were down.
Merrill's move to end commission IRAs a 'tectonic shift' for brokerage industry
InvestmentNews; Oct 7, 2016 @ 1:04 pm
Merrill Lynch's decision to shutter its commission IRA business in response to the Labor Department's fiduciary rule could signal a sea change in the brokerage industry, and could push Merrill brokers reliant on commissions to find another home, according to industry observers.
“I think the Department of Labor regulatory initiative is a game changer in the industry, and we are going to see more tectonic shifts,” Marcia Wagner, principal at The Wagner Law Group, said.
Merrill on Thursday became the first of the wirehouses to announce compliance plans with the DOL fiduciary rule, which raises standards for providing investment advice in retirement accounts.