On June 9, 2017 the Department of Labor Fiduciary Rule became applicable. The main theme of the rule is that any qualifying advice or recommendation must:
• Be in the client’s best interest regardless of how the advisor is compensated;
• Not result in the advisor being paid excessively; and
• Not involve statements that could be considered misleading.
We want to help agents comply with the new rule as simply as possible.
Beginning June 9, 2017 the expanded definition of "fiduciary" investment advice went into effect. Agents selling annuities funded with Qualified Money will be acting as a fiduciary and may receive commission subject to the exception provided under Prohibited Transaction Exemption 84-24 (PTE 84-24).
A Producer Acknowledgment form is provided by each insurance company and must be returned with the application. The Producer Acknowledgment form notifies the company that you are acting as fiduciary subject to PTE 84-24. The Producer Acknowledgment form is required for all annuities funded with Qualified Money (FIA, MYGA or Traditional Fixed Annuity).
A DOL Client Disclosure is required to be retained by the advisor for all annuity sales funded with Qualified Money. The DOL Client Disclosure needs to include information about the Impartial Conduct Standards, Fees and Charges, Compensation and your affiliation with the insurance company. CLICK HERE for a sample DOL Client Disclosure that you can use, however, you are permitted to use your own. DOL Client Disclosure for each sale should not be submitted to the Home Office, it is for your records only and should be kept on file for at least 6 years.
Questions? If you have any questions call Dallas Financial Wholesalers sales support at (800) 746-8397.