Bloomberg Law
Feb. 28, 2022, 9:30 PM

Insurers Straining Under New Labor Department Rollover Standards

Austin R. Ramsey
Austin R. Ramsey
Reporter

Insurers and financial brokers who advise workplace retirement clients are feeling pressure from the Biden administration to apply a strict fiduciary standard of care on all their transactions, even when some of those sales wouldn’t qualify under the law.

The U.S. Labor Department has begun enforcing a Trump-era regulation that is forcing financial professionals to adjust their business plans to qualify for exemptions that let them earn commissions on the advice they give. Fiduciaries are otherwise prohibited from profiting off their advice.

One-time advice to transfer assets from a workplace plan into an annuity or individual retirement account may qualify ...

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