Since 2010, the Department of Labor (DOL) has attempted on several occasions to update its rules governing the provision of investment advice to participants in employer-based retirement plans and owners of individual retirement accounts. After its initial effort in 2010 was withdrawn in response to overwhelming opposition from the industry and Congress, the DOL adopted a package of rule changes in 2016 which was eventually challenged by the industry, and resulted in the 5th Circuit Court of Appeals vacating the 2016 rule in its entirety.
Since then the industry, including the Securities and Exchange Commission (SEC), the National Association of Insurance Commissioners (NAIC) and the DOL itself, have taken several steps to increase consumer protections. This includes creation and adoption of NAIC Model Regulation #275, which imposes a best interest standard on insurance sales, including annuities, the SEC’s adoption of Regulation Best Interest, and the DOL’s adoption of PTE 2020-02 for investment advice fiduciaries who, among other things, meet a best interest standard that aligns with Reg BI.
IRI’s Standard of Conduct Working Group
All work related to the DOL Fiduciary Rule Proposal is handled by the IRI Standard of Conduct Working Group. This Working Group and the resources provided are meant to assist members in their advocacy efforts and in fully evaluating the proposal and its impact on our industry. Questions about the Working Group or information provided can be directed to any member of IRI’s Regulatory Affairs Team.