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.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.