New DOL rules moving forward
As a heads up the new administration is moving forward with new DOL rules. This information in this post is drafted up specifically through the lens of insurance-only licensed folks and not registered reps.
The new DOL rule takes effect February 16th, however, enforcement will not begin until December 20, 2021. We should see more communication coming from our carrier partners in the next few months now that we know the new administration is going to move forward with this version of the DOL fiduciary rule. I would anticipate the following from the carriers:
- Additional training requirement
- Revisions to their suitability forms requiring rational for the recommendation
- Revisions have already taken place for Reg BI
- Possibly an attestation signature from the agent that they are in compliance with DOL
- Stricter appointment criteria and review of agents with multiple issues or complaints
There is no private right of action in this version of the rule. Agents making rollover recommendations will be operating under an exemption that requires them to follow the impartial conduct standards.
There will be more to come in the next few months.