DOL Compliance Requirements for IRA Annuity Sales Information Site
Important: New Procedures for IRA Annuity Sales
What is Changing?
This information site is intended to provide agents working with F&G with material and forms relating to ERISA and Tax Code requirements, established by the U.S. Department of Labor (DOL).
Recently, the Department of Labor broadened its interpretation of who is considered a fiduciary, which affects agents who selling IRAs and other tax-qualified annuities. If you are deemed to be a fiduciary under these rules, you can receive commission compensation only if you satisfy what is called a Prohibited Transaction Exemption (PTE). These developments have contributed to uncertainty in the marketplace.
What Do I Need to Know?
F&G is implementing new procedures to help address that uncertainty and promote necessary compliance. These actions are designed to help you satisfy PTE 84-24 requirements which helps protect you, your clients, and F&G in case you are acting as or found to be a fiduciary. You should familiarize yourself with the following documents to assist in understanding F&G's new forms and procedures.
- F&G's new PTE 84-24 Acknowledgement Form
- F&G's sample PTE 84-24 Disclosure Form
- Instructions for the sample PTE 84-24 Disclosure Form
- F&G's Market Conduct Guide with an addendum addressing new procedures for Tax-Qualified Annuities
What New Paperwork Is Required?
Starting on February 1, 2022, you will need to:
- Provide disclosure to your clients on compensation and other relevant information which can be done using our sample PTE 84-24 Disclosure Form or any other form of your choosing that provides the required information for satisfying PTE 84-24.
Submit a new form, the PTE 84-24 Acknowledgment Form, with every IRA or tax-qualified annuity application sent to F&G.
While you may elect to provide disclosure to your clients sooner, you are required to follow these procedures starting on February 1, 2022.
Please note the Sample PTE 84-24 Disclosure Form is provided as a convenience to our agents. You, rather than F&G, are required to ensure all necessary disclosures and conditions of PTE 84-24 are met. If you use the sample PTE 84-24 Disclosure Form, be sure to review the accompanying instructions. Alternatively, you are welcome to use your own disclosure form as long as it satisfies the requirements and conditions of PTE 84-24.
Sample PTE 84-24
Sample PTE 84-24 Disclosure Form Instructions
For information purposes, here also are links to PTE 84-24, the DOL Investment Advice Rule published in December 2020, FAQs, and a consumer bulletin published by DOL in April 2021 (all current as of January 2022):
F&G will seek to promote compliance with applicable ERISA or Tax Code requirements as we understand them. As more information becomes available or circumstances warrant, F&G reserves the right to make further changes to these procedures.*
We appreciate your attention to good compliance practices.
*Important Disclaimer: The laws on who is a fiduciary and how to satisfy prohibited transaction exemptions under ERISA and the Tax Code are complex and often judged based on facts and circumstances. The Company is making its own good faith effort to promote compliance with applicable requirements. However, agents cannot and should not in any way rely on the Company for legal or compliance advice and are strongly encouraged to seek their own professional legal counsel in these matters. This disclaimer is addressed also to IMOs and any upline agencies which likewise should not rely on the Company for legal or compliance advice and are strongly encouraged to seek their own professional legal counsel on these matters.