ERISA-DOL Issues Another Set of FAQs On Conflict Of Interest Rules

Further to my blog of January 13, the DOL has now issued an additional set of FAQs discussing the “Conflict of Interest” rules.  These rules basically apply more stringent ERISA requirements to those who provide investment advice to retirement plans and IRAs.  Here is the DOL’s introduction to the new FAQs:

Set out below are a number of Frequently Asked Questions (FAQs) regarding implementation of the conflict of interest (COI) final rule (Rule) on fiduciary investment advice. Since the publication of the Rule last April, the Department has held many meetings with stakeholders to assist in their compliance efforts. Many of the questions they raised related to the various Rule provisions that draw lines between fiduciary and non-fiduciary communications. Like the FAQs the Department issued on October 27, 2016, on the Prohibited Transaction Exemptions, these FAQs focus particularly on specific technical questions raised by financial service providers. These FAQs are generally limited to investment advice concerning ERISA-covered plans, IRAs, and other plans covered by section 4975(e)(1) of the Internal Revenue Code (Code).

There are now three sets of FAQs on the Conflict of Interest rules:

— Conflict of Interest FAQs (Part I-Exemptions), issued October 27, 2016 and found here.

— Consumer Protections for Retirement Investors-FAQs on Your Rights and Financial Advisers, issued January, 2017 (discussed in my January 13 blog) and found here.

— Conflict of Interest FAQs (Part II-Rule), issued January, 2017 (the subject of today’s blog) and found here.

Go to the DOL’s website for the Final Rule, and other additional materials on these rules.

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