Sign Up for Free Fiduciary Rule Webinar

The Big “I” will host a free webinar on Thursday, June 9 at 3-4 p.m. ET to help agents dissect a complicated new Department of Labor (DOL) regulation that impacts the sale of certain retirement products.

The DOL regulation tightens conflict of interest rules under the Employee Retirement Income Security Act and is slated to begin taking effect early next year. The regulation also requires any person who provides guidance to clients about certain retirement investments to adhere to a fiduciary standard of care.

The rule primarily impacts IRAs, though it will also affect many 401(k) retirement plans and some HSAs. Moving forward, those who provide investment advice must either avoid compensation arrangements that create conflicts of interest or comply with the terms of an exemption the DOL issues. The new rule may also impact certain retirement plans Big “I” member agencies offer to their employees.

The rule is very complex, spanning more than 1,000 pages. The free hour-long webinar, Will the DOL Fiduciary Standard Affect You?, will explain what the DOL fiduciary standard is and how it will likely affect independent insurance agents who give retirement advice and sell impacted retirement products. The webinar will also focus on how the new rule could impact small businesses that offer their employees access to retirement plans, and how the Big “I” can help.

As independent agencies prepare for implementation of the new rule, the Big “I” and others continue to advocate on Capitol Hill to stem the negative impacts of the rule. Last week, the U.S. Senate passed H.J. Res 88, sponsored by Reps. Phil Roe (R-Tennessee), Charles Boustany (R-Louisiana) and Ann Wagner (R-Missouri). Sens. Johnny Isakson (R-Georgia) and Lamar Alexander (R-Tennessee) have led efforts against the DOL rule in the Senate. The Big “I” and a coalition of business trade associations sent a letter to Senate leadership supporting the resolution.

The resolution would block the DOL fiduciary regulation from taking effect and has already been passed in the U.S. House of Representatives. While the resolution has passed in both chambers, President Obama has said he will veto the measure, and the two-thirds majority necessary for overcoming a veto may be hard to reach.

Additionally, on June 1, the U.S. Chamber of Commerce and several trade groups representing the financial services industry filed a lawsuit charging that the DOL overstepped its authority with the new rule, which they argue is contrary to law and will create unwarranted burdens and liabilities in addition to undermining the interests of retirement savers.

Jennifer Webb is Big “I” federal government affairs counsel.