Last week, the Office of Management and Budget (OMB) released a proposal from the Department of Labor (DOL) for a 60 day extension on the applicability date of the DOL Fiduciary Rule. As you know, the currently scheduled effective date is April 10, 2017.
As a result of the proposal, we are now in the midst of a comment period, which may lead to a modification of the rule (including a possible delay to the DOL Fiduciary Rule).
For many this comes as potentially good news. Should there be a delay or even repeal in some form, we anticipate that most Broker-Dealers and other Financial Institutions will allow the frantic pace being applied to the April 10th compliance date to slow down. However, since so much time and effort has been expended, it is highly unlikely that their efforts will be completely abandoned. It is still critical for all Registered Reps that currently do business with Zenith Marketing Group to engage with their Broker- Dealer to facilitate the future relationship with Zenith and the BD. Rob Murphy, Senior Vice President of Strategic Partnerships and Business Development, who heads up our National Accounts department, will be more than happy to assist you with any questions you have about our continued partnership. He can be reached at (800) 733-0054 ext. 6162.
For the large number of non-registered advisors that work with us daily, you need to know that we will be ready for any eventuality. There is too much uncertainty surrounding the DOL Fiduciary Rule for us not to continue to develop opportunities and solutions for our producers as if it is going forward. That message has been echoed by the carriers we speak to every day.
When the time comes (should it ever arrive), we will share our process with you so you may continue to offer fixed index annuities inside of qualified plans. Again, until further notice, the effective date for the rule is April 10, 2017 and we will be ready.