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If you are at all active in the financial services world, we’re sure that you have heard many different things about the DOL Ruling. That ruling has been the subject of a heated debate across the country for over 18 months and is not much closer to clear/final resolution than it was all that time ago.

There have been some developments in the last several weeks that give us a little more clarity, at least for the remainder of 2017.

If you are writing annuity or life insurance business that involves qualified funds (even RMD’s), be sure you are aware that you are now working under the PTE 84-24 rule in that you are acting as a fiduciary.

To comply with this rule, you must adhere to the “Impartial Conduct Standards” which means that you must:

  • Work in the best interest of the client
  • Charge no more than reasonable compensation
  • Avoid misleading statements

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Because you must adhere to the “Impartial Conduct Standards” there are a couple extra considerations/forms you need to conduct business in the new normal:

  • PTE 84-24 Customer Disclosure and Acknowledgement Form (DOL Disclosure & Acknowledgement Form)
    • This needs to be completed by you (the agent) and contract owner and stored in your files for 6 years as well as provided to the client at the time of sale. There are many variations of this form available. The required inclusions of that form are:
      • Disclose Fees and Charges
      • Disclose any conflicts of interest
      • Have your compensation clearly stated
    • This form is not to be submitted to the Carrier.
  • It is in your best interest to include a client fact finder in your files (this fact finder should be as thorough as possible and should clearly indicate that the client’s best interest was served by the product you recommended (Form-ClientQuestionnaire-2017_WL)
  • We strongly recommend that you check with whichever annuity carrier you are working with for any additional disclosures/forms they may require

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