Los Angeles partner Fred Reish was quoted in an Investment News article titled, “Some firms opting to sell fixed annuities under best-interest contract exemption to keep trips, bonuses intact.” The article discusses financial institutions that have decided to sell certain types of fixed annuities following the DOL’s fiduciary rule and its strict compliance guidelines. Fred Reish discusses the two exemptions — best-interest contract exemption (BICE) and the prohibited transaction exemption (PTE) 84-24.
“84-24 says the adviser or agent can only receive a commission, period,” Fred said. “No trips, awards, bonuses, no nothing. Only a commission. BICE, if properly managed, allows additional compensation."
Fred noted that financial institutions are determining if trips and bonuses are worth the difficulty and risk of complying with BICE.
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