The Department of Labor's Fiduciary Rule 3.0 was released today. The new fiduciary rule becomes effective on September 23, 2024, and will be fully enforced one year later, in September 2025. We are reviewing the final rule and will provide you with a summary and analysis very soon.  

There are a few areas we'd like to call out:

• The DOL steamrolled this bill to target commissions, or what the White House referred to as “junk fees.”
• It broadens the definition of fiduciary to include more financial professionals and more retirement recommendations, including “one-time” advice.
• The rule will severely hamper consumer access to retirement advice and products, including annuities.
• Makes it more difficult for financial security professionals to provide their clients financial security through holistic retirement planning.
• Completely disregards already established federal (SEC) and state (45 and counting) regulations protecting consumers.
• “One size does NOT fit all.” The fiduciary rule treats annuities and investments the same, but they are fundamentally different, and serve different purposes.

This rule is a solution in search of a problem that has already been addressed, and it is clearly a step backward for the retirement security of Americans. You can read my statement to the press here. 

Meanwhile, there are a few things you can do TODAY, to be prepared:

• There continues to be a path forward with our elected officials in Congress. We'd welcome the chance to host you at our upcoming Advanced Markets event in Washington, D.C., May 22-24. Book your ticket here.
• Politics & Policy Call. As we work through 2024, there is a lot of activity at the federal and state level that you need to know about. Our experts will break it down for you on April 30 at 2 pm. Register for the call here.
• Get everyone in your circle of influence to join Finseca. This kind of moment is exactly why we need to reunify the profession.

If you have feedback on the final rule – please email Jennifer Fox or Alex Kim.