In 2020, the Department of Labor (DOL) issued a final rule affirming the pre-2016 exemption relief remains in place including Prohibited Transaction Exemption (PTE) 84-24. In addition, the DOL provided a new interpretation of its five-part test for determining fiduciary investment advice and created a new PTE 2020-02.

This rule impacts you if you receive a commission on the sale of an Annuity to a qualified plan participant and IRA holder. Please note, this requires a disclosure document to be signed by the investor. Moreover, the DOL has broadened the potential application and recommendations that determine fiduciary status. Notably, rollover recommendations may now satisfy and trigger fiduciary status.

We’re here to support you:

Nationwide^® has no carrier requirement for 2020 DOL, but we are offering support for you by providing access to a DOL Updates webpage containing the following materials that may assist in meeting the DOL fiduciary requirements. If selling through a broker-dealer and not an IMO/BGA, please contact your broker-dealer directly for DOL guidance.

• Product Profile Summaries
  Nationwide has product profile summaries available to assist you in educating clients regarding applicable products. These product summaries are available on nationwidefinancial.com on each applicable product page.
• Department of Labor Informational Guide
  Created to provide you with a better understanding of the DOL Fiduciary Rule, the consequences of violations, and Financial Professionals’ responsibilities.
• Prohibited Transaction Exemption (PTE) 84-24 Disclosure and Acknowledgement Form
  This form is not a good order requirement for new business. The purpose of this disclosure form is to provide important information for the Fiduciary or IRA owner to consider when determining whether to purchase an annuity contract with Plan or IRA assets. The information is also intended to satisfy the requirements and conditions of U.S. Department of Labor Prohibited Transaction Exemption 84-24 (“PTE 84-24”).

Record Retention
Please note, you should keep the executed disclosure form, any illustrations, sales literature or other information provided to your clients for at least 6 years from the date that the disclosure form is executed.

We’re ready to support you
Your business is important to us and we’re committed to helping you. Please use the resources on our DOL updates page as you prepare for this change.