As you know by now, the DOL Fiduciary Rule has been delayed for a shorter period of time than anticipated... This delay has made it even tougher for brokers to plan for the future. Do you really understand what the rule is even about? If you want a very concise explanation of what may happen, you can listen to the following webinar by Todd Berghius, Senior ERISA Counsel from Integrated Retirement by clicking here.
Assuming you listened to the piece, you will probably still have one major question, and that is, "What can I do to be prepared just in case all or part of this rule is upheld?" The best information available to you today is to divide the rule into two parts, the B.I.C. and the B.I.C.E.
The B.I.C. - It seems no one (carriers or associations, legal counsel, etc.) will fight, argue or disagree with the fact that agents should operate in the “best interest of the client”, so most likely anyone who works for commissions is going to have to adjust the way in which they present and track the options they recommend to clients. You are going to have to be able to show the clients risk tolerance, source of funds, financial wherewithal, and even what compensation you will make on the various products you suggest.
In regards to the B.I.C.E, most agree that this is where the problems with the rule really begin to jump out. Who wants or can afford the legal liability of being a “fiduciary”? How can the industry as a whole comply with what the ruling demands regarding leveling all compensation across the board so no one product pays more than the next? The questions like these go on and on.
For right now, let’s start simple, at AMC Life Marketing we are prepared to help you solve both of these problems immediately, if the need arises. Over the next two weeks we will show you how we can help you continue working without interruption no matter which way the DOL decides to go on these two major points. Be ready, keep reading, and we’ll answer all of your questions over the next two weeks!