DOL fiduciary rule: When advisers actively seek to use BICE
Many advisers are embracing an exemption they've frequently derided, even though a less-contentious one is available for annuity sales
June 14, 2017 | by Greg Iacurci | InvestmentNews.com
To opponents of the Department of Labor's fiduciary rule, the best-interest contract exemption is something akin to the spawn of Satan.
This provision of the rule, which raised investment advice standards in retirement accounts, allows broker-dealers to continue providing investment advice deemed conflicted by the DOL, but under certain conditions.
It inspires such ire and consternation primarily due to the fact that it exposes broker-dealers to class-action lawsuits from investors. BICE also comes with several different disclosure requirements that stakeholders are none too fond of.