December 1, 2021
DOL Fiduciary Rule Enforcement Coming Soon
Are you ready for the new rule?
The Department of Labor revised the fiduciary rule and enacted it in February 2021, enforcement of this rule was delayed until December 20, 2021. As this deadline approaches, it is important that you understand how it impacts you and your business practices.
What is the revised rule? It uses a five part test to determine if you are a fiduciary and what your responsibilities are when acting as a fiduciary.
What business does it impact? The rule applies to IRA rollovers and monies rolled out of employer sponsored retirement plans covered by ERISA (401(k), ERISA 403(b), etc.).
Does this impact 403(b) and 457(b) business? No, non ERISA 403(b) (schools and churches) and all 457(b) plans are not covered under this rule.
How are you impacted by the rule? The effect this has on your day to day business depends if you are a securities licensed agent (registered representative) or insurance only licensed agent.
Registered Representatives
Consult your Broker Dealer for compliance guidance.
- ESI provides a comprehensive program for their representatives.
Insurance License-only Agents (non-registered)
NLG makes compliance easy. Information on the DOL regulation and the required compliance documentation you should begin to use are available on the Agent Portal under the Training tab.
Please Note:
Our legal team reviewed the delay and determined that it only applies to the section of regulation applicable to Registered Representatives. Insurance License-only Agents must also comply beginning December 20.
