On the identical time, the go well with continues, “the DOL amended a number of associated ‘prohibited transaction exemptions’ … together with an modification to PTE 84-24, which immediately pertains to the compensation that insurance coverage brokers could obtain if they’re deemed to be fiduciaries beneath the brand new 2024 Fiduciary Rule.”
Labor’s 2024 fiduciary rule and PTE “amendments are simply the most recent salvos by the DOL in its virtually 15-year quest to re-define what it means to be an ERISA fiduciary in contravention of the desire of Congress,” the go well with states.
“Furthermore, it blatantly defies the prior ruling of the USA Courtroom of Appeals for the Fifth Circuit … putting down a rule package deal that was successfully indistinguishable from the 2024 Fiduciary Rule,” it explains.
FACC stated in an announcement Thursday that it was “dissatisfied that the DOL has chosen to go down this identical drained path with yet one more proposal that blatantly violates the 2018 ruling by the Fifth Circuit and arrogantly ignores limitations of its authority beneath ERISA.”
The DOL’s new guidelines, finalized on April 23, “are yet one more assault on the monetary providers business — particularly insurance coverage brokers — that solely serve to create extra value and confusion for American customers,” FACC stated.
The group stated that it “strongly helps state insurance coverage regulation, together with the most recent updates to the NAIC Mannequin Regulation establishing finest curiosity gross sales conduct necessities that present shopper safety whereas preserving shopper selection.”
Associated: The 2024 DOL Fiduciary Rule: A Timeline