Are You Ready for the DOL Fiduciary Rule?

DOL Rule Delayed 18 Months!  Update - 9/1/17

The Office of Management and Budget (OMB) has approved an 18 month delay on the implementation of the remaining provisions in the Labor Department's Fiduciary Rule.

The DOL stated that the delay is needed in order to complete the following:
  • Complete their review of the Fiduciary Rule as required by the Presidential Memorandum dated February 3, 2017 
  • Release a "new and more streamlined class exemption built in large part on recent innovations in the financial services industry" 
  • Coordinate with the Securities and Exchange Commission in development of future standards of conduct, as well as "avoid obligating financial services providers to incur costs to comply with conditions, which may be revised, repealed or replaced." 

Advisers should note that the Proposed Rule does not change the fact that following June 9, 2017, insurance agents are now and will remain fiduciaries for any annuities or other insurance products sold with respect to qualified funds. Agents seeking to earn commissions from the sale of such products are required to adhere to the modified version of PTE 84-24 (including, adhering to impartial conduct standards, earning no more than reasonable compensation, and making appropriate disclosures).

The DOL stated a new comment period will follow as to whether a "set time", such as an 18-month delay is preferred or a tiered approach in which certain aspects become effective in differing intervals. Western Marketing will continue to monitor any changes and will communicate any future developments.

Important DOL Rule News - 5/22/17

As of 5/22/17, Department of Labor Secretary Alexander Acosta decided not to postpone the Department of Labor Fiduciary Rule any further. The DOL Fiduciary Rule will be in effect June 9th, 2017 with no strict enforcement until January 1, 2018. We do expect some changes from our fixed indexed annuity carriers, but those changes for the near term should be limited to additional disclosures. The brunt of the Fiduciary Rule will be enforced on January 1st, 2018. This will require the signing of the Best Interests Conflicts Exemption (BICE or BIC) by a financial institution in order to receive commissions on the sale of Fixed Indexed Annuities. A financial institution is either a Bank, Broker Dealer, Insurance Company or a Registered Investment Advisory Firm.

Western Marketing has kept in close contact with our insurance carriers during the progression of this rule. At this time, it does not appear many, if any insurance companies will be signing the BICE on the behalf of their independent agents. Western Marketing does have an affiliation with a 3rd party that will be signing the BICE for advisers who wish to collect a commission on the sale of fixed indexed annuities after January 1st, 2018. As the final decision of this rule has put much of the industry in a wait-and-see approach, we can now move forward with full plans to deliver competitive and valuable fixed indexed annuities to our advisers.

For the advisers who have been waiting on the final version of the rule to be delivered, we certainly believe that now is the time to pursue your Series 65 license. The enforcement of this rule will be here in a few short months. As many of you know, Western Marketing established our own Registered Investment Advisory Firm, Western Wealth Builders. If you are going to be taking the Series 65 exam, please reach out to us. We have discounts on pre-licensing materials as well as experienced staff to guide you through as you study. With strategic managed money platforms, fee based variable annuities to separately managed accounts, we have access to some of the top managers across the country to deliver customizable plans for your clients.

As always, Western Marketing and Western Wealth Builders strive to provide you unbiased and useful information on the development of the Fiduciary Rule. We certainly will monitor any further developments and keep you up to date.  Please give us a call at 800-852-7152 to make sure you are ready to make DOL compliant sales. Check out our RIA at www.WesternWB.com .



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Missouri Valley, IA  51555


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The information on this site is for licensed insurance agents and brokers only. If you are not an insurance professional, please do not rely on this information. Instead, refer questions to a licensed insurance professional. This material has been prepared for informational purposes only and should not be relied upon for accounting, legal, tax or investment advice. Some programs are not available in all states.  Agents contracted with insurance companies through Western Marketing are independent agents and are not employees of Western Marketing.  We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all your options.