Bank/Thrift Supervision   |    Capital    |    CFPB    |    Deposit Insurance    |    Interchange    |    Mortgage Finance
Municipal Advisors   |    OCC-OTS Merger   |    Preemption    |    QM - QRM    |    Swaps   |    Volcker Rule    |    Full Topics List
Qualified Mortgage - Qualified Residential Mortgage
Consumer Financial Protection Bureau - CFPB
Bank/Thrift Holding Company Supervision
Deposit Insurance
Mortgage Finance
Municipal Advisors
OCC-OTS Merger
Volcker Rule
Corporate Governance
Financial Stability Oversight Council (FSOC)
Office of Financial Research (OFR)
Systemic Risk
Supervision and Oversight
Payment, Clearing and Settlement
Prudential Supervision
Trust & Securities
Asset-Backed Securities
Resolution Authority

Tuesday, January 17, 2017

DOL Publishes Second Round of Fiduciary Rule FAQs

The Labor Department has released a second set of frequently asked questions on its final rule redefining who counts as a fiduciary under the Employee Retirement Income Security Act and Internal Revenue Code. The FAQs address questions received by DOL from the industry since the rule was issued, and are intended to offer additional clarity about the rule and what institutions must do to comply. Specific areas of focus include exemptions regarding investment recommendations, investment education, general communications, independent fiduciaries and platform providers.

After sustained advocacy by ABA, DOL in questions 1 and 12 clarified that providing educational information to IRA and retirement customers about investment alternatives -- such as product features, returns and fees (for example, bank CD rate sheets) -- would not be considered “investment advice,” provided that the bank did not make a specific recommendation to the customer. In addition, DOL concluded in question 34 that it would also not trigger fiduciary status if a bank were to offer an automated daily cash sweep service to its clients (including IRA owners) that – at the customer’s direction – automatically sweeps uninvested cash from the customer’s account into a short-term investment vehicle on a daily basis.

Read the FAQs.

No comments:

Post a Comment

Please read our comment policy before making a comment.