The DOL Responds to 34 Questions

[ktmorgan]

I would add another page to this where the client agrees to binding arbitration.

The point is really to not get into the lawsuit in the first place...the cost alone will bankrupt a lot of reps.

With the new rules you can't ask or force a client to waive is his ability to sue you and go in to arbitration. I can't cite where I read that right now. But it's in there somewhere. Unless, it's changed recently.

The Lawyers at DOL have made it very easy for Reps to get called into court.

 

[Justin Bilyj]

I heard the DOL will be canceled now that Donald is going to be president. Do you think insurance companies will still keep parts of the DOL under self-policing type of policy?

 

[DHK]

I don't think insurance companies will want to create any kind of "fiduciary relationship". They will want to be product manufacturers, just as they are now.

Now investment firms... they are embracing this as a justifiable reason to switch people out of commission based investments and move everyone over to fee-based portfolios - generating more ongoing revenues.


If and when this ruling is cancelled (remember that President-Elect Donald Trump wants two regulations removed for every new one proposed)... I wonder if State Farm will cancel its plans to stop selling financial services through its agents altogether? They were going to end their sales practices and just have customer service for financial services in April 2017.