In October 2016, the U.S. Department of Labor issued its first guidance, in the form of frequently asked questions, about its new fiduciary rules. In the absence of any additional governmental action, whether by the Obama administration, or the incoming administration, the new regulations will become effective in April 2017. FAQs address in large part a variety of compensation questions that have been raised by both broker-dealer firms and their financial advisers. However, this set of FAQs does not address most of the key questions that have been of concern to the structured products industry, such as the definition of the term "proprietary product," and the permissibility of different offering methodologies under the BIC Exemption.

For our client alert about the FAQs, see: https://media2.mofo.com/documents/161031-dol-guidance-fiduciary-rule.pdf  

Summary of DOL Conflict Rule, BICE and Principal Transaction Exemption

Morrison & Foerster has prepared an easy to follow flow chart summarizing the DOL Conflict Rule, BICE and Principal Transaction Exemption, see:

https://media2.mofo.com/documents/161116-summary-of-dol-conflict-rule-bice.pdf