Fiduciary Rule's Impact On IRA Annuity Recommendations
By Fred Reish, Bruce Ashton and Joshua WaldbeserJuly 25, 2017, 10:11 AM EDT
Law360, New York (July 25, 2017, 10:11 AM EDT) -- The focus of this article is the prohibited-transaction exemptions (PTEs) — PTE 84-24 and the best interest contract exemption (BICE) — that are available to broker-dealers when their registered representatives recommend annuities to individual retirement account (IRA) investors. The purpose is to address the factors that firms may want to consider in deciding which exemption to use during the “transition period,” currently scheduled to end on Dec. 31, 2017.
We think, however, that there is a good possibility the transition period will be extended beyond the...