Washington, D.C. counsel Brad Campbell was quoted in an InsuranceNewsNet article titled, “IMOs Dance With DOL on Fiduciary Rule Deadline.” The article discusses Futurity First Financial’s plan to be granted financial institution status for its three independent marketing organizations (IMO) by the DOL.
Time is running out for the company to transition before the April 10, 2017 fiduciary rule goes into effect. Brad notes that several pending lawsuits against the DOL rule may have a significant effect.
“My understanding is … any of these federal courts has the authority to stop this rule on a national basis,” Brad said.
Brad also noted that IMOs are being put at a competitive disadvantage.
“[If DOL grants the exemption] The new financial institutions … will be starting that process well near the deadline,” Brad said. “And that’s going to raise a lot of concerns for them in figuring out how to set up their BIC processes. How to set up the policies and procedures, identifying…conflicts and so forth.”