In April of 2015, the Department of Labor evisited its position on conflicts of inter- est within the retirement plan community to deal with perceived conflicts among
principals dealing in the ERISA and annuity
markets. Sometime this month, the department is expected to issue its final ruling, with
mandates that insurers be in compliance by the
beginning of 2017.
The intent of the department is to make
sure customers are taken care of and when
they meet with their advisor they can trust
they are getting information that is in their
best interest, according to Ben Yahr, a senior
manager at EY.
“The rule will fundamentally change
how products and services are delivered to
retirement accounts, retirement plans, plan
participants, and IRAs,” says Yahr. “The rule
will expand the definition of investment advice
The Department of
Labor’s proposed rule on
puts more work on the
plates of life insurance
carriers to eliminate
conflicts of interest.
By Robert Regis Hyle