Department of Labor (DOL) rule update
From Sherri Du Mond, SVP, FMO Distribution

Department of Labor (DOL) rule update: nonenforcement period ends January 31, 2022

We are quickly approaching January 31, 2022, which is the last possible date that an insurance-only agent can rely on the nonenforcement period for the new DOL rule, entitled "Improving Investment Advice for Workers and Retirees." (This rule became effective on February 16, 2021 but had a temporary nonenforcement period.)

High-level overview of DOL rule
The new DOL rule restores the 5-part test to determine who is a fiduciary subject to fiduciary standards. Although prior interpretations of the 5-part test often excluded insurance transactions, the DOL has made it clear in its commentary on the rule and FAQs that it expects more transactions involving recommendations to take a distribution or rollover to or from a qualified plan or an IRA to meet the "regular basis" prong and satisfy the 5-part test.

If the DOL rule applies to the transaction and satisfies the 5-part test, the advice is subject to a fiduciary standard AND you must comply with an available Prohibited Transaction Exemption to receive compensation on the transaction.

To help prepare for doing business under the new DOL rule, visit our DOL resource page to review training and other tools, including a sample disclosure form to help you better understand the requirements.

NOTE: If you are working with a broker/dealer, you should get instructions on compliance with the new DOL rule “Improving Investment Advice for Workers and Retirees” from your back office.

Our continued commitment
I hope this message finds you, your family, your team, and your clients well. Please know that Allianz continues to be committed to supporting you and your practice during this period of changing regulatory requirements. Thank you for your business.

Sherri Du Mond
SVP Head of FMO Distribution
 

Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America (Allianz).

Products are issued by Allianz Life Insurance Company of North America, PO Box 59060, Minneapolis, MN 55459-0060.

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EFIX-6488 (01/2022)