DOL Retirement Security Rule & Related PTE Amendments: Fiduciary Rule 4.0
On Nov. 3, 2023, the U.S. Department of Labor released a proposed rule package that would broadly expand fiduciary obligations and liabilities to financial services professionals — including insurance agents — who would now be deemed ERISA fiduciaries when working with retirement investors. The rule was finalized and published in the Federal Register on April 25, 2024, without any substantive or meaningful improvements despite significant, specific and data-supported feedback from industry stakeholders.
- Rollover recommendations will be considered fiduciary activity.
- The rule upends the current five-part test for determining fiduciary status, sweeping most retirement advice activity under the fiduciary standard and requiring the use of a prohibited transactions exemption in order to receive compensation.
- The current scope of PTE 84-24 is narrowly prescribed and will only be available to independent insurance producers selling non-security annuities and will only cover the sales commission paid to the producer by the insurer or affiliate.
- Other financial professionals will need to use an amended PTE 2020-02 for exemptive relief.
- The amended PTEs add new disclosures and heightened supervisory requirements.
NAFA believes Fiduciary Rule 4.0 is fatally flawed; we will now pivot to all necessary and available avenues to fight this regulatory overreach.
Use the information below to learn more about this critically important issue, get up to speed on NAFA’s education and advocacy responses, and take a deep dive into 14 years of misguided attempts at DOL overreach under the guise of “retirement security.”