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June 8th, 2017
No matter what happens with the new DOL Fiduciary Rule, this process should be a wake-up call for every officer or director whose company has an Employee Retirement Plan but does not have Fiduciary Liability Insurance or Directors and Officers Liability Insurance in place.
Although the purpose of this article is not to dissect the rule, it is important to understand the integral parts of the rule:
1. All 401(K) advisors must serve as fiduciaries and:
2. Best Interest Contract Required:
3. Conflicts of Interest Removed
4. Best Interest Contracts Exemption (BICE Loophole) *major increase in liability
1. Personal Liability – all committee members are personally liable as fiduciaries of these plans
2. Litigation Risk
2. Employer/Plan Sponsor
Will your company be prepared? We recommend your company have a separate Fiduciary Insurance policy in addition to a Directors and Officers Liability Insurance policy, as we anticipate many class action lawsuits once the regulation becomes official.
Now is the time to secure these policies. As the 6th largest independent insurance intermediary organization in the world, Brown & Brown can help.