Today, the Department of Labor (“DOL”) published its much anticipated and highly controversial Conflict of Interest Rule regarding imposition of a fiduciary standard on advisors providing recommendations for retirement accounts. Norton Rose Fulbright previously reviewed industry criticism of the anticipated rule as well as measures firms were already taking in anticipation of the rule, including changes to product offerings and fee structures, setting stricter asset requirements for customers, or exiting the broker-dealer space altogether.
In connection with the rollout of the new rule, Secretary of Labor Thomas Perez held an advanced briefing yesterday for reporters to preview the rule, in which he stated that DOL “streamlined” the rule in response to the commentary DOL received. Among the key changes noted in his press conference and in The White House Fact Sheet on the rule, DOL extended the implementation period and reworked the controversial Best Interest Contract (“BIC”) exemption requirements to, among other things, require fewer disclosures and allow use with any investment product.
Norton Rose Fulbright will closely examine the new rule language, and upon such examination, provide a detailed analysis regarding the measures necessary to comply with the new rule, as well as the rule’s anticipated legal and regulatory implications.