Preparation for Compliance with the Department of Labor Fiduciary Rule – The Review Process

On April 6, 2016, the U.S. Department of Labor (DOL) released its final regulation (DOL Rule) defining the circumstances under which a financial professional will be deemed to be a fiduciary.  The DOL Rule has expanded the definition of fiduciary advice and created the best interest contract exemption (BIC Exemption) as the primary vehicle for obtaining exemptive relief for prohibited transactions, including those instances in which certain forms of compensation are received.

This is another in a series of blogs that we are creating to assist firms as they prepare to conduct business under the requirements and conditions of the DOL Rule after it becomes effective.

What You Should Do

Among the critical initial steps that firms should be taking is a review process whereby the following items (among others) should be examined:

  • your client accounts;
  • your compensation structure;
  • your product offerings;
  • your compliance policies and procedures;
  • your supervisory policies and procedures; and
  • your technology platform.

This review process is critical in order to determine what business practices will be affected, what risks need to be evaluated and assessed, what policies and procedures must be changed and what steps must be taken to implement necessary changes.

How Oyster Is Helping

Oyster Consulting is providing assistance to our clients with the following approach:

DOL Simple 6 Steps Graph


Oyster Consulting has the knowledge and experience to help you with this review process and to support all of your efforts to operate in compliance with the DOL Rule.  For some firms, compliance with the rule will be an enormous undertaking, taxing firm resources. For others implementation may mean making minor changes to policies and procedures.  If your firm has limited capacity to manage the necessary assessments, implementation, and monitoring, Oyster can supplement your staff. We can help to manage and guide your project to successful completion.

To learn more about our DOL Service Offerings and the impacts of the DOL Rule, or to request a consultation, please call us at 804.965.5400 or complete our contact form and one of our associates will be happy to help you.