Regulatory Outlook | 02.17.21
DOL Investment Advice Rule Takes Effect — What Does That Mean?
The DOL's investment advice rule has taken effect, but that does not entirely clear up the mystery of what future annuity sales rules will look like. There are still plenty of options on the table for the Biden administration to reshape the rule -- a holdover from the Trump administration. The investment advice rule itself was a replacement for the unpopular fiduciary rule published by the Obama administration. A common perception is that allowing the rule to stand is a win for industry. But Barbara Roper, director of investor protection for the Consumer Federation of America, is not ready to concede that narrative. "I don’t expect this to be the Department’s last work on this topic, as their release suggested. I expect them to issue guidance in the short term that could help to give more substance to the best interest standard and the requirement to mitigate conflicts," she said. "I expect further rulemaking in the future to close remaining loopholes in the definition of fiduciary investment advice, so that all rollover recommendations are included."
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