DOL Fiduciary Rule

Here we go again: Navigating the New DOL 2023 Fiduciary Rule

Financial advisors, buckle up. The dust has settled on the Department of Labor’s (DOL) 2023 Fiduciary Rule, and the landscape of retirement advice has shifted. While much remains unchanged, there are key nuances to unpack, and Hazard & Siegel is here to guide you through the storm.

So, what exactly does the new rule entail?

Tightening the Definition of an Investment Advice Fiduciary: The rule focuses on “regular basis” advice – if you discuss investments with retirement plan participants or IRA owners routinely, you’re likely considered a fiduciary.
Prohibited Transactions: Certain transactions, like rollovers into proprietary products or receiving excessive compensation, are now stricter, requiring clearer disclosures and justifications for potential conflicts of interest.
Enhanced Care Standard: You’re held to a higher standard of care when providing investment advice, ensuring it’s in the client’s best interest and tailored to their specific circumstances.
Compliance Tools: The rule offers safe harbors and exemptions for common practices, giving you practical ways to demonstrate compliance.

Now, let’s address the burning questions:

Does this mean I can’t recommend proprietary products? Not necessarily. But you need to disclose any potential conflicts of interest and demonstrate the recommendation truly benefits the client.
How do I comply with the enhanced care standard? Document your client interactions, conduct thorough due diligence on investments, and avoid any conflicts of interest.
Do I need to update my disclosures? Absolutely. Review your disclosures to ensure they reflect the new rule’s requirements, including potential conflicts of interest and compensation structures.

Hazard & Siegel is here to help you navigate these changes:

Comprehensive Guidance: Our team of experts can analyze your practices and advise you on compliance strategies.
Customized Disclosures and Documents: We can draft or review your documents to ensure they adhere to the new rule’s requirements.
Compliance Training: We offer training programs to help your team understand the new rule and implement best practices.
Marketing Communications: You can use our marketing communications to help clients better understand the value of the services you provide.

Remember, the DOL 2023 Fiduciary Rule isn’t the end of the world, it’s an opportunity to strengthen your client relationships and build trust. By partnering with Hazard & Siegel, you can navigate these changes with confidence and stay ahead of the curve in this evolving regulatory landscape.

Don’t let the new rule leave you stranded in the fog. Contact Hazard & Siegel today and chart a course towards clear skies and compliant success.

Here is a link to the U.S. Department Of Labor:
Fact Sheet: Retirement Security Proposed Rule and Proposed Amendments to Class Prohibited Transaction Exemptions for Investment Advice Fiduciaries

Planning for retirement is a responsibility that should be taken seriously, and choosing the right retirement annuity can be a prudent decision. Retirement annuities, acting as personal pension plans, provide a guaranteed income for life, bringing a sense of financial security and stability to retirees. As with any financial decision, it is essential to consult with a qualified financial advisor to assess individual needs and make informed choices. By harnessing the power of retirement annuities, individuals can confidently embrace their well-deserved retirement, knowing that their financial future is in capable hands.

Talk to Hazard & Siegel when you need a comprehensive lifetime financial solution.