The U.S. Department of Labor (DOL) has finalized its new prohibited transaction exemption (PTE) for financial professionals who provide retirement plan advice. The PTE requires advisors to work in the best interests of their clients, receive reasonable compensation, and make no “materially misleading statements.” The PTE is effective 60 days after publication in the Federal Register.
The DOL exemption aligns with the Securities and Exchange Commission’s Regulation Best Interest, and preserves opportunities and choices for workers and retirees seeking high-quality, personalized advice.
“NAIFA thinks the Department of Labor proposal – with the modifications in today’s final rule – will benefit retirement investors by preserving access to a wide variety investment advice professionals, products, and compensation arrangements,” said NAIFA CEO Kevin Mayeux. “The Department has struck the right balance between crafting a PTE with robust compliance obligations that serve the interests of investors, while avoiding an overly prescriptive approach or penalizing certain market segments or arrangements versus others.”
The DOL under the Obama administration initially issued a rule that would have imposed a restrictive fiduciary duty on financial professionals and hindered access of middle-market investors to retirement services and advice. NAIFA was among the organizations that filed a lawsuit resulting in the U.S. Court of Appeals for the Fifth Circuit vacating the rule in 2018.
1 min read
New DOL Rule on Retirement Advice Aligns with the SEC's Reg BI
By NAIFA on 12/15/20 6:24 PM

TOPIC LIST :
- Federal Advocacy (216)
- State Advocacy (180)
- Insurance & Financial Advisor Regulation (102)
- Grassroots (96)
- Congress (79)
- Standard of Care & Consumer Protection (63)
- Annuity Best Interest (49)
- COVID-19 (46)
- Retirement Planning (46)
- Legislation & Regulations (30)
- Supported Legislation (30)
- Press Release (27)
- Interstate Advocacy (26)
- Legislative Day (26)
- DOL (21)
- Health Care (21)
- Producer Employment (18)
- Life Insurance & Annuities (16)
- Producer Sales & Marketing (16)
- Congressional Conference (15)
- Tax Reform (15)
- Long-Term Care (13)
- Producer Licensing & CE (13)
- SEC (13)
- Advocacy Partnerships (12)
- NAIC (11)
- Fiduciary (10)
- Member Spotlight (10)
- Remote Notarization (10)
- Advocacy (9)
- CMS (9)
- Diversity (9)
- Financial Literacy (9)
- IRS (9)
- Advocacy Resources (8)
- Data Security (8)
- New Jersey (8)
- SECURE 2.0 (8)
- Washington (8)
- Iowa (7)
- NCOIL (7)
- PRO Act (7)
- Privacy (7)
- Regulation Best Interest (7)
- Wisconsin (7)
- Build Back Better Act (6)
- California (6)
- IFAPAC (6)
- Massachusetts (6)
- Medicare (6)
- New York (6)
- State-Facilitated Retirement Plans (6)
- Tennessee (6)
- Florida (5)
- Maine (5)
- NAIC Model Regulation (5)
- Opposed Legislation (5)
- Senior Financial Protection (5)
- Colorado (4)
- Georgia (4)
- Get Out the Vote (4)
- Group & Employee Benefits (4)
- Licensing (4)
- Nebraska (4)
- North Dakota (4)
- Paid Family Medical Leave (4)
- Texas (4)
- White House (4)
- Alabama (3)
- Arizona (3)
- Compensation Regulation (3)
- FINRA (3)
- Idaho (3)
- Illinois (3)
- Kentucky (3)
- Maryland (3)
- Montana (3)
- New Mexico (3)
- Promoting Financial Security (3)
- Property & Casualty Insurance (3)
- Taxes (3)
- Underwriting & Risk Classification (3)
- Virginia (3)
- Affordable Care Act (2)
- Annuity Awareness Month (2)
- COBRA (2)
- Connecticut (2)
- Delaware (2)
- Indiana (2)
- Michigan (2)
- Minnesota (2)
- NIPR (2)
- North Carolina (2)
- Ohio (2)
- Oklahoma (2)
- Oregon (2)
- Retirement (2)
- Short-Term Insurance (2)
- Small Business (2)
- Small Business Administration (2)
- Utah (2)
- WIFS (2)
- Arkansas (1)
- August In-Districts (1)
- Awards (1)
- Continuing Education (1)
- FinTech (1)
- Financial Security (1)
- Future Leaders (1)
- Hawaii (1)
- Individual Retirement Accounts (1)
- Industry News (1)
- Insured Retirement Institute (1)
- Kansas (1)
- Leaders (1)
- Life Insurance Awareness Month (1)
- Limited & Extended Care Planning Center (1)
- Long-Term Care Insurance (1)
- Louisiana (1)
- Marketing (1)
- Medicaid (1)
- Mississippi (1)
- Missouri (1)
- NAIFA Partner (1)
- NAIFA-Dallas (1)
- Retirement Plans (1)
- South Carolina (1)
- South Dakota (1)
- Veterans (1)
- Washington, D.C. (1)
- Webinar (1)
- West Virginia (1)