1. June 9, 2017
What You Need to Know

2. JUNE 9 changes
When the DOL Fiduciary Rule was delayed until July 1st 2019, certain changes were made
Transition Period to July 1, 2019
FIA’s and VA’s can be sold under two PTE’s (transition or BICE)
No requirement for written disclosures and representations of Fiduciary Compliance
Temporary Enforcement Policy
“Agents who are working diligently and in good faith to understand and come into compliance with the fiduciary duty rule”
DOL will review rule in accordance with Feb 3rd Presidential Memo.
The portion of the DOL rule that is being delayed until July 1st deals with Phase 2 of the Rule this phase deals with exemptions, which regulate the sale of annuities sold with retirement funds. In particular, the BICE which requires a financial institution to take liability for each contract and give clients the right to sue over investment advice. PTE was also part of the phase 2 delay.

3. June 9 Requirements
Investment advice to qualified plan and IRA participants must meet a fiduciary standard
You must comply with Impartial Conduct Standards
Transition PTE requires compensation and fee disclosure

4. Fiduciary
Prudence
Obedience
Loyalty
No Misleading Statements

5. Impartial Conduct Standards
Must act in the “Best Interest” of your client
Must not charge more than reasonable compensation
Must make no misleading statements

6. 84-24
You become a fiduciary when providing investment advice to a retirement investor
You must follow Impartial Conduct Standards including receiving no more than reasonable compensation
You must provide compensation, fee and material conflict disclosure to your client

7. Reasonable Compensation
Principle based approach
Market based reasonableness

8. Sample Compensation Disclosure

9. Business Submission Process
Follow a Process
Fact Find
Analysis
Illustration
Application
Compensation and fee disclosure signed by client
Keep files while contract is active + six years

10. Business Submission Process
Forward applications to carrier or New Business – As you currently do
Keep everything else in a client file

11. Beyond DOL What will the adviser of the future look like post DOL
We are not looking for a “Quick DOL fix”
Our DOL platform will consider how we help you grow your practice

12. Technology FireLight Riskalyze
CRM & Proprietary Software Being Developed

13. FireLight
Manages the application data submission process for any line of business and product type on a single platform
Expedites submission process
Eliminates NOGO
Enhances the adviser – client user experience
Approved DOL Fiduciary Rule sales process

14. Riskalyze
Cutting edge technology to identify the client’s acceptable level of risk and reward
Shows vital role Index Annuities can play in a portfolio
Using a client’s risk score and their portfolio’s risk score, ensures that the portfolio aligns with their investment goals and expectations

15. Proprietary Technology
To be built
Provide targeted solutions
Product Gap
Protection Gap
Income Gap
Protected Income Gap
Targeted Market Solution

16. Training
Product
Market
Practice Development

17. Marketing Support Leads Mentorship Case Design Seminars
Prospecting and Marketing Materials

18. Products and Compensation
Continue with our Robust Platform of Products
Competitive Compensation

19. Final DOL Rule July 1, 2019 Complete DOL platform support
Financial Institution
Forms
FAST team
DOL Mentoring
Advanced Markets and Case Design
Adviser and Client Websites