This episode provides valuable information about the DOL's Retirement Security Rule, who it would impact and how. It was recorded before the temporary stay of the rule ordered by a Texas court in late July.
The Department of Labor's new fiduciary rule, set to take effect on September 23, 2024, seeks to address the changing realities of retirement planning. The rule tackles critical issues surrounding rollover recommendations and retirees' ability to maintain a steady income stream. While the focus on rollover advice and sustainable income strategies is clear, the impact varies across the financial services industry.
In this episode of Advisor Revelations, David talks with Fred Reish, Partner and Chair of the Fiduciary Services ERISA Team at Faegre Drinker Biddle & Reath. Fred is one of the most influential thought leaders on ERISA (Employee Retirement Income Security Act of 1974), Department of Labor rules, fiduciary implementations, and is a noted authority on retirement plan products and plan management.
Fred talks with David about the Department of Labor's new fiduciary rule. They discuss the regulation's origins, goals, and potential impact on the insurance industry. Fred also provides insight into how insurance professionals and financial advisors can navigate the evolving regulatory landscape of retirement planning.
In this episode:
- [01:44] - The evolution of the DOL's fiduciary regulation
- [06:31] - The impact of the DOL's new fiduciary rule
- [10:06] - Fred's thoughts on how the industry responds to the DOL's new rule
- [13:01] - The uncertainty surrounding the rule's implementation
- [17:15] - Understanding the fiduciary standards in the insurance industry
- [19:27] - How the DOL plans to implement the new rule
- [22:09] - What makes a reasonable compensation
- [25:29] - How the DOL mitigates incentive compensation
- [27:39] - Why the new DOL regulation doesn't affect RIAs much
- [29:45] - Fred's retirement planning strategy
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