The DOL Fiduciary Standard Rule goes into effect on January 31, 2022
The enforcement of the new Department of Labor (DOL) Fiduciary Standard Rule officially goes into effect on January 31, 2022. The Rule is applicable to transactions that involve the rollover of funds from either an IRA or a qualified plan to a new IRA annuity.
If the producer conducting the transaction is acting as a fiduciary in the transaction (per five-part test*), then the rule requires that either:
1. The producer and an associated fiduciary financial institution disclose to the applicant that they are acting as fiduciaries in the transaction and confirm that the transaction is in the applicant’s best interest (Please note that Sagicor Life Insurance Company has elected to not be the fiduciary financial institution for such transactions.); or
2. The transaction be completed, if applicable, per Prohibited Transaction Exemption
84-24**, for an exemption to DOL rule requirements. As such, you may submit to the Company applications for rollover transactions only if:
i. You have an affiliation with a fiduciary financial institution that will make with you the required disclosure; or
ii. You make a determination that in each transaction you are eligible to use the 84-24 exemption.
To confirm, with rollover transactions, Sagicor will not have or assume responsibility for monitoring or assessing producer compliance with the requirements of the DOL Fiduciary Standard Rule. However, if you determine that the 84-24 exemption is applicable, to facilitate your completion of the transaction, the Company is providing a generic Prohibited Transaction Exemption (PTE) 84-24 form in its annuity application packets.