So You Think You Know the Fiduciary Rule?
July 12, 2016
12:00 - 1:00 p.m. (EDT)
Guest Speaker:
Marcia S. Wagner
Principal
The Wagner Law Group
Hosted by:
Alison Salka
Senior Vice President and Director of Research
LIMRA
Please email questions to [email protected]
Question 1
I hear two things in the market place - the first is that PTE 84-24 governs first and
foremost with respect to the fiduciary rule and fixed annuities.
The second is if you're dealing with qualified money then the fiduciary rules apply
first and foremost. Even if you're recommending a fixed annuity (a MYGA, for
example) within the qualified space, you are a fiduciary and subject to the BICE and
all other applicable rules and requirements. Which is it?
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Question 2
How are firms handling compensation and incentives like trips and bonuses given
the new rule? Do you think we can still incent on financial services sales in the
future?
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Question 3
How can we make the case under BICE that life insurance commissions do not
result in biased advice when, as a percentage of premium, they are typically 20-30x
what an annuity or mutual fund commission would be?
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Question 4
I am curious to know whether there are standard disclosure and consent forms
being created or proposed for use for companies that have to adhere to the BICE
standards and for companies that have to adhere to the Impartial Conduct
Standards?
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Question 5
As a captive carrier only selling fixed annuities (no indexed) how do we: - ensure
our contract is in the best interest of the client? - best utilize PTE 84-24? Also, how
will the sale of life insurance be impacted - for example, if we use RMDs to fund a
WL policy, is this a fiduciary act and what disclosures need to be given at time of
sale of the WL?
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Question 6
Would the sale of a variable universal life policy in connection with a
recommendation to distribute funds from an IRA plan fall under the BIC Exemption
or PTE 84-24? If a recommendation was made in the past to distribute funds from
an IRA to purchase life insurance with annual proceeds and scheduled distributions
are coming up in 2017 and 2018, would the existing plan fall under the new
fiduciary rules?
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Questions 7
Would you consider one RIA referring a client to another RIA (within the same RIA)
to get either a rollover recommendation for a individual or record-keeper
recommendation for a plan sponsor a "fiduciary act" within the Referral part of the
rule? OR since they are in the same RIA is it NOT a "fiduciary act" - it's just one RIA
pointing the client to the other RIA within the RIA that handles that kind of
business.
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Questions 8
For the small plan market; do you see B/Ds that are looking to use the BICE creating
a process within the home office to generate the documented process to
determine that a sale is in the best interest of the client? Or are they providing a
software tool to the field force to generate that documentation on their own in the
field?
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Question 9
Does the new Fiduciary rule apply to Non ERISA 403b plans? Specifically the K-12
market?
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Question 10
Regarding the sale of fixed annuities via both licensed bankers and Series 7
financial advisers.... do traditional MYGA fixed products fall under the DOL rules?
Are they in reality or perceived to be less risk by regulators?
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Question 11
The Best Interest standard is clearly one in which a financial institution (1) eliminates
as many conflicts with the client as possible and mitigates and then discloses the
remaining conflicts under the BICE, as well as (2) looks for expense reductions and only
offers reasonable cost investment products to the client. BUT... what ELSE should a firm
be supervising to? A B-D has a ton of Regulatory Notices and FINRA Suitability Rule
2111.... but what else should a firm be supervising for BICE clients???
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Question 12
12b1's - can a Registered Rep sell a plan that has A Shares?
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QUESTIONS FOR Marcia Wagner
Have a question you would like our Presenter Marcia Wagner to Answer?
Please email Deb Dupont @ [email protected]
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