DOL Enforcement Policy on Arbitration Limitation in Best Interest Contract Exemption

DOL Field Assistance Bulletin 2017-03 provides guidance on the DOL’s nonenforcement policy on the arbitration limitation in Best Interest Contract Exemption.

Document Excerpt

Accordingly, the Department of Labor will not pursue a claim against any fiduciary based on failure to satisfy the BIC Exemption or the Principal Transactions Exemption, or treat any fiduciary as being in violation of either of these exemptions, if the sole failure of the fiduciary to comply with either the BIC Exemption or the Principal Transactions Exemption, is a failure to comply with the Arbitration Limitation in Section II(f)(2) and/or Section II(g)(5) of the exemptions.1

This policy will continue to apply as long as the exemptions include the Arbitration Limitation now found in Section II(f)(2) and/or Section II(g)(5). To the extent that circumstances give rise to the need for other relief, including prohibited transaction relief, EBSA will consider taking such additional steps as necessary.


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