Compliance & Regulation

Fiduciary FAQs: Practical Insights for Advisors

Q&A Part II tackles more questions on Department of Labor’s regulation

June 222, 2016 — DES MOINES, Iowa–(BUSINESS WIRE)–Principal Financial Group® has again partnered with Groom Law Group to answer common questions on the Department of Labor’s final fiduciary rule, this time focusing on practical insights for advisors.

“Advisors continue to have questions. Now that we know a bit more about what the regulatory package may look like in practice, we’re highlighting the top questions we’re hearing from advisors about how it might impact their businesses,” said Greg Burrows, senior vice president of retirement and income solutions at Principal®. “We’re continuing our analysis and remain committed to helping advisors navigate the changes ahead.”

The latest Q&A covers subjects such as:

  • -New vs. existing business: fiduciary status does not apply retroactively, so what will that mean for existing business?
  • Implications for rollovers: the rule affects retirement plan to IRA rollovers, as well as rollovers from one IRA to another.
  • What exemptions can apply?
  • Fee considerations: what’s a reasonable fee?
  • How to best work with other fiduciaries, wholesalers and service providers: this is where things get complicated, so how can advisors manage these relationships?

First Fiduciary FAQs available

Advisors continue to have questions...

In April Principal released its first Fiduciary FAQs paper, which highlighted considerations when selecting a 401(k) provider in light of the fiduciary regulation. It also included a quick refresher on foundational concepts of the Employee Retirement Income Security Act (ERISA).

For more research, analysis and insights from Principal, visit the Principal Knowledge Center and connect with us on Twitter.




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