This session will address what firms need to do to comply with the new Department of Labor (DOL) Prohibited Transaction Exemption (PTE) 2020-02, “Improving Investment Advice for Workers and Retirees,” that went effective on February 16, 2021. In many ways PTE 2020-02 is the “BIC” (which was vacated in June 2018) without the “C”. This new PTE has broad impact, including IRAs, and firms need to understand how to comply. This is particularly true if a firm has concerns that their recommendations could trigger ERISA fiduciary status, which is more likely, due to the PTE’s preamble language interpreting the DOL’s long-standing 1975 “5-part test” for defining investment advice.
• Understand the DOL’s new interpretation of fiduciary advice under the 5-part test (including rollover recommendations)
• Learn the key requirements under PTE 2020-02
• Discuss other PTEs and when exemptive relief may not be necessary
• Discuss policies, procedures and practical methods to comply with 2020-02