FSI Applauds DOL Investment Advice PTE Going into Effect

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.