Fiduciary FAQs Part Two: Practical Insights for Advisors

Q&A tackles more questions on Department of Labor’s regulation

DES MOINES, Iowa--()--Principal Financial Group® has again partnered with Groom Law Group to answer common questions on the Department of Labor’s final fiduciary rule, this time focusing on practical insights for advisors.

“Advisors continue to have questions. Now that we know a bit more about what the regulatory package may look like in practice, we’re highlighting the top questions we’re hearing from advisors about how it might impact their businesses,” said Greg Burrows, senior vice president of retirement and income solutions at Principal®. “We’re continuing our analysis and remain committed to helping advisors navigate the changes ahead.”

The latest Q&A covers subjects such as:

  • New vs. existing business: fiduciary status does not apply retroactively, so what will that mean for existing business?
  • Implications for rollovers: the rule affects retirement plan to IRA rollovers, as well as rollovers from one IRA to another. What exemptions can apply?
  • Fee considerations: what’s a reasonable fee?
  • How to best work with other fiduciaries, wholesalers and service providers: this is where things get complicated, so how can advisors manage these relationships?

First Fiduciary FAQs available
In April Principal released its first Fiduciary FAQs paper, which highlighted considerations when selecting a 401(k) provider in light of the fiduciary regulation. It also included a quick refresher on foundational concepts of the Employee Retirement Income Security Act (ERISA).

For more research, analysis and insights from Principal, visit the Principal Knowledge Center and connect with us on Twitter.

About Principal®
Principal helps people and companies around the world build, protect and advance their financial well-being through retirement, insurance and asset management solutions that fit their lives. Our employees are passionate about helping clients of all income and portfolio sizes achieve their goals – offering innovative ideas, investment expertise and real-life solutions to make financial progress possible. To find out more, visit us at principal.com.

Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.

The subject matter in this communication is provided with the understanding that Principal® is not rendering legal, accounting or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax or accounting obligations and requirements.

Insurance products and plan administrative services are provided by Principal Life Insurance Company. Principal Funds are distributed by Principal Funds Distributor, Inc. Securities are offered through Principal Securities, Inc., 800-547-7754, Member SIPC and/or independent broker/dealers. Securities sold by a Principal Securities Registered Representative are offered through Principal Securities, Inc. Principal Funds Distributor, Principal Securities and Principal Life are members of the Principal Financial Group®, Des Moines, IA 50392.

Contacts

Principal Financial Group
Media Contact:
Jaime Naig, 515-247-0798
naig.jaime@principal.com

Release Summary

Principal Financial Group has again partnered with Groom Law Group to answer common questions on the Department of Labor's final fiduciary rule, this time focusing on practical insights for advisors.

Contacts

Principal Financial Group
Media Contact:
Jaime Naig, 515-247-0798
naig.jaime@principal.com