The U.S. Department of Labor released the much-anticipated final version of its 2024 Fiduciary Rule yesterday. Is your IMO partner prepared to help you comply with this 826-page federal rule affecting all qualified money sales?
As expected, the Retirement Security Rule turns you, the independent financial professional, into an ERISA fiduciary when recommending products funded by a 401(k), 403(b), ERISA plan, or even an IRA. Despite opposition from a broad industry coalition, the DOL essentially removed any options you had to avoid this (read IAMS' Public Comment letter in response here).
What’s more, commissions of any kind are prohibited without finding your way through a compliance maze you will be forced to navigate alone. And without a valid prohibited transaction exemption (PTE), you could face regulatory fines, penalties, loss of commissions, and potential disqualification of your client’s qualified money status.
“This rule will significantly affect the entire annuity industry, including how producers operate, what and how they sell, how they get paid, and the liabilities they face. Fortunately, IAMS is prepared to help our producers adjust to these changes and advocate for their rights.”
Chris Conroy, EVP and General Counsel, IAMS
Thanks to strong industry and trade association partnerships, we've led the independent distribution advocacy charge for years. Our leadership was instrumental in defeating the 2016 fiduciary rule - litigation that ended with that version of the rule being invalidated by an appellate court.
IAMS will continue to closely monitor developments of the fiduciary rule and advocate for the independent producer through direct lobbying, trade association coordination, and rule challenges as necessary to protect your interests.
Submit your information here to download the DOL's Retirement Security Rule Fact Sheet.