Today, the Department of Labor (DOL) announced that its final prohibited transaction exemption (PTE) for investment advice fiduciaries will go into effect as scheduled on Tuesday, February 16, 2021. This came after the Biden Administration placed a freeze on all regulations that were developed under the previous administration but had not yet gone into effect. The Financial Services Institute (FSI) applauds the administration for allowing the PTE to move forward.
The DOL’s PTE harmonizes its conduct standards with the Securities and Exchange Commission’s (SEC) Regulation Best Interest (Reg BI), which went into effect on June 30, 2020.
“We are pleased to hear of this development,” said FSI Executive Vice President & General Counsel David Bellaire. “Allowing this PTE go into effect provides the regulatory clarity and consistency financial services firms and financial advisors need to confidently serve their clients. Together, the DOL PTE and Reg BI increase transparency and investor protection without restricting Main Street Americans’ access to advice.”
The DOL developed the PTE for investment advice fiduciaries in consultation with the SEC to ensure alignment with Reg BI, something FSI encouraged.
FSI Announces 2021 Advocacy Circle of Excellence Honorees and Winners of Stephen R. Kareta Excellence in Advocacy Awards
FSI’s Second Annual Awards Program Recognizes Members for Outstanding Contributions to Advocacy on Behalf of Independent Advisors and Their Clients […]Read More
FSI Challenges DOL Independent Contractor Rule Withdrawal
Late yesterday, the Financial Services Institute (FSI) joined in filing an amended complaint against the Department of Labor (DOL), challenging […]Read More
Statement on DOL’s Withdrawal of Independent Contractor Rule
Today, the U.S. Department of Labor (DOL) announced the withdrawal of its Independent Contractor Status Under the Fair Labor Standards […]Read More