Department of Labor (DOL) rule update: nonenforcement period ends January 31, 2022
We are quickly approaching January 31, 2022, which is the last possible date that an insurance-only agent can rely on the nonenforcement period for the new DOL rule, entitled “Improving Investment Advice for Workers and Retirees.” (This rule became effective on February 16, 2021 but had a temporary nonenforcement period.)
High-level overview of DOL rule
If the DOL rule applies to the transaction and satisfies the 5-part test, the advice is subject to a fiduciary standard AND you must comply with an available Prohibited Transaction Exemption to receive compensation on the transaction.
To help prepare for doing business under the new DOL rule, visit our DOL resource page to review training and other tools, including a sample disclosure form to help you better understand the requirements.
NOTE: If you are working with a broker/dealer, you should get instructions on compliance with the new DOL rule “Improving Investment Advice for Workers and Retirees” from your back office.
Our continued commitment
Sherri Du Mond