The DOL's New Fiduciary 'Rule' and the PTE: What Registered Investment Advisers Need to Know

Faegre Drinker

Effective February 16, 2021, the DOL announced an expanded definition of fiduciary advice which will cause many RIA services, that were previously considered non-fiduciary under ERISA and the Internal Revenue Code, to be subject to a fiduciary and best interest standard of conduct and the prohibited transaction rules for fiduciary advice. To address the prohibited transaction consequences, the DOL also issued prohibited transaction exemption (PTE) 2020-02 that imposes a standard of conduct, disclosure obligations, mitigation requirements, policy and procedure requirements and more.

Join us for a lively discussion regarding the DOL’s recently issued Frequently Asked Questions (FAQs) and the processes, policies and procedures RIAs should put in place now to address these issues:

• The standard of conduct under the PTE
• Fiduciary requirements for a rollover recommendation
• Rollover advice and what steps RIAs need to take to avoid a prohibited transaction
• Mitigation of conflicts of interest
• Disclosure considerations

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