Capital Group Policy Spotlight
On June 5, 2019, the Securities and Exchange Commission (SEC) released final rules - scheduled to take effect on June 30, 2020 - to regulate investment advice provided by brokers to any customers who invest for personal, family, or household purposes.
Capital Group senior counsel Jason Bortz explains why the Department of Labor conflict of interest rule does not favor open architecture over single-fund-family solutions. Watch the video to see why there are many prudent reasons a fiduciary might choose a single-fund-family solution.
Variable annuities in IRAs were one of the more controversial aspects of the DOL’s initial proposal. The proposed rule would have required that variable annuity contract sales into IRAs comply with the Best Interest Contract exemption — including preexisting variable annuities that are already sitting in IRAs. Instead, the final rule covers variable annuity contracts and IRAs with the grandfather provision.
Under the new fiduciary rule, advisors will have to look at whether staying in plan is in the best interests of their clients, and document their assessments. Watch to learn more.
The final fiduciary rule impacts advisory business, but not nearly as much as it does traditional brokerage business. Being an ERISA fiduciary is really a new world, because of prohibited transaction rules that bar an advisor from working on a transaction where there’s any whiff of a conflict of interest.
Initially a more controversial part of the initial DOL proposal, the final rule includes a Best Interest Contract exemption that allows a financial institution to receive variable compensation. But it must take steps to mitigate potential conflicts of interest, such as incentives for product recommendations that pay the firm more in compensation.
SEPTEMBER 15, 2017
As the U.S. Department of Labor’s request for a new implementation delay is considered, we address some possible questions on the implications for the fiduciary rule.
June 27, 2017
The Department of Labor (DOL) fiduciary rule went into effect on June 9, greatly expanding the definition of fiduciary investment advice. Capital Group provides answers to frequently asked questions about this new rule.
The Department of Labor (DOL) conflict of interest rule has a far-reaching impact on financial advisors with clients in retirement plans. Here is what the new fiduciary rule means for 401(k) rollover recommendations.
Investment professionals are now taking steps to implement the changes required by the Department of Labor’s (DOL) fiduciary rule, which went into effect starting this month.
As of June 9, investment advice pertaining to retirement accounts is subject to a fiduciary standard, according to Department of Labor (DOL) requirements. This means advisors will be legally required to give advice solely in their clients’ best interest — and to meet new requirements that mitigate potential conflicts of interest.
JANUARY 9, 2017
Use this comprehensive reference guide to gain a greater understanding of the DOL’s fiduciary rule, learn strategies to meet the new requirements and position your practice to succeed.
In March, the 5th Circuit Court of Appeals issued a decision vacating the DOL Fiduciary Rule in its entirety. The ruling went into effect on June 21, 2018, meaning that the DOL Fiduciary Rule is no longer the law of the land.
Last month, the U.S. Department of Labor requested an 18-month extension of the fiduciary rule’s transition period. As a result, key changes may be in store for the Best Interest Contract (BIC) exemption and two other exemptions.
The DOL fiduciary rule took effect, expanding the definition of investment advice. However, the full requirements will not be effective until January 1, 2018.
The DOL announced a 60-day delay in the implementation of its fiduciary rule, which is now scheduled to become effective on June 9.
On April 6, the Department of Labor (DOL) issued its finalized fiduciary rule. Over a year in the making, this final rule will have a significant impact on how retirement investment advice is delivered in the United States.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.