|DOL Fiduciary Rule Vacated – For Now|
The U.S. Department of Labor significantly altered the retirement account landscape through the Fiduciary Rule, which was partially implemented in June of last year. These regulations generally made more people fiduciaries, including insurance agents, and required them to meet a best interest standard of care and other requirements when making recommendations about retirement accounts.
While we at ISN Network support a best interest standard, we have not supported the DOL Fiduciary Rule because it reduces access to annuities, increases the cost of retirement products and services for consumers, and increases litigation. ISN has worked closely with our trade associations to challenge the Fiduciary Rule as violating federal law and the U.S. Constitution.
Last week, a federal court agreed that the Fiduciary Rule is unlawful, and it vacated the regulation in its entirety. The decision will likely become effective nationwide in early May, but there is the possibility of further litigation by the DOL that could delay that effective date or alter the decision.
While the court’s action will likely wipe clean the best interest slate at the federal level (for now), the DOL may propose alternative rules, and new best interest regulations are anticipated from the SEC, the NAIC and/or individual states. Accordingly, in the coming weeks we will monitor the possibility of other changes. You should continue doing business as usual with ISN. We will also continue to work with our trade associations and peer companies to advocate for a uniform, workable standard at both the state and federal level.
Updates will be provided as more information becomes available.
If you have any questions, please do not hesitate to contact us at 1-800-338-1892 x 215