The fiduciary standard proposal released Tuesdayis, according to the Labor department, an improvement upon a 2010version in a number of ways.
Here’s how, in the DOL’s own words, as detailed in an agencyFAQ:
1. Provides a new, broad, principles-based exemptionthat can accommodate and adapt to the broad range of evolvingbusiness practices. Industry commenters emphasized thatthe existing exemptions are too rigid and prescriptive, leading toa patchwork of exemptions narrowly tailored to meet specificbusiness practices and unable to adapt to changing conditions.Drawing on these and other comments, the best interest contractexemption represents an unprecedented departure from theDepartment’s approach to PTEs over the past 40 years. Its broad andprinciples-based approach is intended to streamline compliance andgive industry the flexibility to figure out how to serve theirclients’ best interest.
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