Proposed Best Interest Contract Exemption for Insurance Intermediaries | Practical Law
The Department of Labor (DOL) issued a proposed class exemption from certain prohibited transaction restrictions of the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code of 1986 (Code). If granted, the exemption would permit certain insurance intermediaries, and the agents and companies they contract with, to receive compensation in connection with fixed annuity transactions that may otherwise give rise to prohibited transactions as a result of the provision of investment advice to retirement plan participants and beneficiaries, IRA owners, and certain plan fiduciaries.