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Two sides of the DOL fiduciary rule’s ‘Best Interest Contract Exemption’ advisers must understand

June 2, 2016


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.

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Second Annual Blue Vault Broker Dealer Educational Summit 2016
Broker Dealer Educational Summit 2016
April 14, 2016

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.