The Department of Labor's proposed conflict-of-interest rule would bring significant changes to how advisors for retirement plans and IRAs can be compensated on the annuity and insurance products they recommend, according to a brief from Drinker Biddle.

Under current regulations, prohibited transaction exemption 84-24 allows advisors to receive commissions on annuity contracts, regardless of whether the products are considered to be "securities" under securities law.

But that would change under the DOL's proposal, which would limit the exemption to the sale of insurance contracts that are not securities under securities law, according to a memo from the firm's ERISA experts, which includes Fred Reish.

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