Campbell also noted that the Trump administration has impetus to propose the rule before the election, which would make it more difficult for a potential Democratic administration to easily undo it, he said.
Until the DOL changes the rules, B-Ds and reps who work with plans and participants are mandated to use a BIC exemption contract containing a number of specific terms, including:
- Acknowledgement of the advisor’s and the financial institution’s fiduciary duty to the investor;
- Disclosure of compensation and other fee information;
- A warranty that neither the advisor nor the financial institution will make any misleading statements about information pertinent to a transaction (including statements on the issues of fees, assets and conflicts of interest);
- A list of the steps the advisor/financial institution will take to mitigate potential conflicts of interest.
According to the DOL’s regulatory agenda, the rule is still in the “Proposed Rule stage.”