DOL Fiduciary Rule

Important

In March 2018, the 5th Circuit Court of Appeals struck down the Department of Labor’s fiduciary rule, a decision that vacates not only the expanded definition of "fiduciary advice," but also the exceptions that were associated with the rule. However, this course remains approved for continuing education credit in this state and is offered for those who want to understand the rule.


In 2016, the Department of Labor released the final version of its new fiduciary rule, which has radically changed how financial professionals can advise and counsel their clients on retirement strategies, retirement investments, and retirement plans, including IRAs. The DOL determined that it was in the public’s interest to update the fiduciary standards that apply to ERISA plans and IRAs, and to expand the types of investment advice that will trigger fiduciary protections. Effectively, the new rule:

  • subjects a much broader group of retirement plan advisors and producers to fiduciary status and fiduciary requirements
  • deems common insurance and investment product recommendations to retirement plans and IRAs as fiduciary investment advice

The course includes the following chapters:

  • Background of the DOL Fiduciary Rule
  • Investment Advice and Fiduciary Status
  • Best Interest Contract Exemption

This is an advanced level course. Upon conclusion, students will be able to:

  • explain the purpose, scope, and applicability of the DOL’s fiduciary rule
  • describe what investment advice and recommendations trigger fiduciary status
  • describe the standards and requirements that fiduciaries must meet under the rule
  • explain the purpose of the Best Interest Contract (BIC) exemption and the requirements it imposes
  • cite the exemption changes that affect fixed indexed annuities and variable annuities