There are two different versions in the exemption, each with respective limitations and benefits that advisers and their institutions must master
May 27, 2016 @ 1:12 pm | By Greg Iacurci | Investment News
The Best Interest Contract Exemption is one of the main pillars of the Labor Department’s fiduciary rule.
Without it, many brokers and advisers wouldn’t be able to continue doing business in retirement accounts under current business practices and compensation arrangements. But with it, there is a way forward (albeit with more compliance requirements and litigation risk).
However, there is a sort of duality to the exemption that will dictate how firms can forge ahead: what has become known generally in the industry as BICE versus “BICE Lite,” each with its own specific requirements and trade-offs.
The Blue Vault Summit could not have been more perfectly timed. This gathering of the Broker Dealer and Sponsor communities provided insightful and open discussion from several vantage points. These conversations are paramount, especially in a time of significant regulatory change.