The New Labor Department Fiduciary Rules and IRA Rollovers

Journal of Financial Service Professionals (Vol. 71, No. 1, January 2017)

Published by the Journal of Financial Service Professionals in their January 2017 issue, Tom Sigmund authored this article about changes to fiduciary regulations and IRAs. The article details the new rules, when they go into effect and how to prepare for them, and also covers topics that include prohibited transactions, exemptions, and rollover considerations.


In April of 2016, the Department of Labor (DOL) finalized its long-awaited regulations relating to fiduciary advice about IRAs and qualified plans. With these regulations, the DOL expanded the world of fiduciary advice and in the process created an enforcement mechanism that did not previously exist. Arguably, these new rules have the greatest impact on IRAs and IRA rollovers. Although compliance with the new rules obligates Society of Financial Service Professionals (Society of FSP) members to increase the paperwork associated with their representation, asking the Society of FSP advisor to act in the best interest of his or her clients should not be viewed as a new requirement. These new rules may in fact enhance the business endeavors of the Society of FSP advisor.


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