The Department of Labor Fiduciary Rule’s implementation date is rapidly approaching with portions of the rule going into effect April 10, 2017; with the full implementation of the rule being effective January 1, 2018. While many advisors already act in their client’s best interest, this Rule makes it their legal obligation. We would like to take a moment to update you on many of the actions we have taken so that we can continue to assist you in growing your business.
Under the DOL Fiduciary rule, when the sale of a fixed indexed annuity using qualified funds is made, a “Best Interest Contract” must be signed by the client and a qualifying Financial Institution. In order to comply with the rule DFS Marketing, Inc. partners have applied to qualify as a Financial Institution with the Department of Labor. This will allow DFS Marketing, Inc. partners to act as your Financial Institution when you conduct a fixed indexed annuity sale.
In addition to applying for Financial Institution status as an IMO, DFS Marketing, Inc. partners are in the process of forming our own Registered Investment Advisory Firm. DFS Marketing, Inc. partners are affiliating with strategic and well known partners in the RIA world to offer a robust portfolio offering, full bodied technology platforms and practical training programs. It is our intention to provide the necessary tools, systems and compliance oversight to allow insurance-only agents and registered representatives to continue to serve your clients through our qualifying Financial Institutions.
In order to help you transition to changes that will be needed to comply with the DOL Rule, we are attentively creating an extensive and well-defined training program. Our training program will not only assist you in working in a compliant manner but also support you in growing your business to new levels with the innovative technology and sales tools. It is our expectation that these tools and systems provide you with minimal disruption to your business so that you can focus on your growth.
We are committed to providing solutions both for registered representatives and insurance only agents. Be assured that we are here to help you grow your business and we look forward to continuing to provide you with a broad annuity products access in conjunction with new sales and operational systems to comply with the new standards that our industry will need to follow.
Julian N. Dougharty