Sentinel Security Life DOL Update

by admin sunderland | Jun 06, 2017

DOL Fiduciary Rule is Here
Department of Labor Secretary Acosta confirmed on Monday, May 22, 2017 that the fiduciary rule will begin phasing in June 9, 2017, requiring a higher standard of care for advice given on qualified retirement investments. The full requirements will go into effect on Jan. 1, 2018, barring further regulatory or legislative changes.

What This Means For You
Starting June 9, 2017, producers who give advice on investments in retirement accounts (qualified funds) will be held to the Impartial Conduct Standards, which has three requirements:

  • Advice is in the best interest of the customer
  • Compensation is reasonable
  • Statements about investment transactions, compensation and conflicts of interest are not misleading

Between now and December 31, 2017, the current Prohibited Transaction Exemption 84-24 (PTE 84-24) can be used to sell all fixed and fixed indexed annuities. While the full requirements of the Best Interest Contract Exemption (BICE) do not go into effect until Jan. 1, 2018, producers and NMO's can decide between the two exemptions in the near-term. Producers who choose to use the BICE will need to submit business through a financial institution.

Due to these new requirements and in order to satisfy the requirements and conditions of the fiduciary rule we are implementing the following changes.

  • The Producer Acknowledgment form is required for all qualified fixed and fixed index annuity sales beginning on June 9, 2017. This form will need to be submitted to the Home Office with the application.
     
  • A Disclosure Statement is required to be retained by the producer for all qualified fixed and fixed index annuity sales beginning on June 9, 2017. This disclosure needs to include information about the Impartial Conduct Standards, Fees and Charges, Compensation and your Affiliation/Limitation to the insurance company.

Provided is a sample Disclosure Statement that you can use, however, you are permitted to use your own. Disclosure Statements for each sale should not be submitted to the Home Office, they are for your records only and should be kept on file for at least 6 years. 

Click on the links below to access the Producer Acknowledgement form and the Sample Disclosure Statement. 

Producer Acknowledgment Form
Disclosure Statement

If you have questions please email sales@sslco.com  or call 1-800-247-1423.