Decoding the DOL Proposed Fiduciary Regulations

Are you the type of person who loves or hates change? I’ve found over the years that change is inevitable, so I try to focus in on the positives and keep my eyes ahead. Most of the time change pushes me to a better outcome because I am forced to rethink about the way things have always been done.

When I heard the DOL released “re-proposed” regulations defining who is a fiduciary of an ERISA employee benefit plan, I knew change was looming and we’d all need to do some work to figure out the full scope. Now, I’m in that rethinking mode of how to adapt to the changes in the proposal.

Here’s a high-level overview of what the changes could mean to you:

  • Almost any recommendation, or even a suggestion, of an investment to a retirement plan, a participant or an Individual Retirement Account (IRA) would be considered fiduciary investment advice.
  • Whenever fiduciary recommendations can affect the compensation of an advisor, of its supervisory entity, or of any affiliate, it is likely to result in a prohibited transaction.
  • Because of that, the DOL also issued a series of proposed exemptions, or exceptions, from the prohibited transaction rules.

For a more in depth summary, you may also want to read The DOL’s Fiduciary Proposal: What It Means to Advisors — provided by Fred Reish, Partner, Drinker Biddle & Reath, LLP.

6/2 advisor webcast helps you understand the impact

On June 2, 2015, the Principal Financial Group® will host a free webcast, “The DOL Fiduciary Proposal and Possible Impact for Advisors.” This webcast will provide advisors a chance to hear directly from Fred Reish, in addition to other experts about the full scope of the change.

If you’re like me, blocking an hour may be just what you need to focus on the details and understand the potential impact to you, including:

  • The scope of the new DOL proposed fiduciary definition,
  • Perspectives about distribution and rollovers, and
  • Exemptions or ‘carve-outs’ that could materially affect retirement plan advisors.

Register now for the webcast – which will take place on June 2, 2015 at 2 p.m.  ET/ 1 p.m. CT.

If you’ve already spent some time reading up on the proposed regulations, what are your thoughts on the potential impact? Let’s chat in the comments.


Affiliation Disclosures

Fred Reish (Partner) for Drinker Biddle & Reath, LLP is not affiliated with any company of the Principal Financial Group®.

The subject matter in this communication is provided with the understanding that The Principal® is not rendering legal, accounting, or tax advice.  You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements.

Insurance products and plan administrative services are provided by Principal Life Insurance Company a member of the Principal Financial Group® (The Principal®), Des Moines, IA 50392.

© 2015 Principal Financial Services, Inc.