On Apr. 24, NASAA reported progress to meet DOL fiduciary rule.
- NASAA report confirmed industry progress to comply with DOL fiduciary rule.
- In the multi-billion-dollar individual retirement account (IRA) rollover market.
Main Findings
- Demonstrates that broker-dealers were making progress in revising policies,
and procedures to inform investors in retirement plan for DOL fiduciary rule. - Rule would have treated as fiduciaries if recommend IRA rollovers to clients.
- Cited tangible benefits that came from Department of Labor’s fiduciary rule.
Report Scope
- Based on nationwide survey of 96 large, mid-size and small, broker-dealers.
- To determine the standard of care they were using, before to the DOL’s rule.
- Steps they took in anticipation of rule’s implementation, originally Apr. 2017.
- Rule was vacated by the U.S. Fifth Circuit Court of Appeals on Mar 15, 2018.
- Prior to court decision, no standard of care was given, other than suitability.
- However, after rule’s adoption, many firms reported steps to modify policies.
- To bring these activities into compliance with rule’s best interests standards.
- Included new policies and procedures, guidance to agents with the accounts.
