401(k) Advice Rule Puts Insurers on Well-Trodden Compliance Path

The Labor Department’s newest iteration of a 401(k) investment advice standard has raised concerns from a life insurance industry gearing up for its implementation, even as the rule’s history means compliance groundwork already exists.

Annuity providers and insurance agents who handle newly-covered rollovers won’t be completely sidelined under the final rule and prohibited transaction exemptions, so long as they are willing to adjust and spend to meet stricter requirements for disclosures and compensation, several benefits lawyers told Bloomberg Law.

Life insurers and independent producers have been among the most vocal critics of the rule’s potential impact on rollover recommendations into ...