DOL Fiduciary Rule Compliance
New rules new tools
To ensure strict compliance with the government rules, organizations operating in regulated industries have been providing continual employee trainings and engaging dedicated armies of regulatory lawyers. Both these efforts are quite time consuming and expensive. Therefore, organizations are seeking more efficient solutions that can help them achieve their regulatory compliances goals.
For example, retirement asset advisory companies have to comply with the rules of the US Department of Labor (DOL). Specifically, they have to mark all fiduciary risk-bearing marketing materials with the corresponding disclaimers. When the DOL released a new ruling in 2021, it gave companies a year-long grace period to bring all their marketing materials to compliance with the new regulation. The manual analysis of thousands of marketing materials would be slow and costly and tools were needed to help support the review and conversion of materials.
How it works
The solution identifies high, medium and low fiduciary risk-bearing content in materials offering personalized services and investment suggestions related to financial products. Some of these suggestions can trigger fiduciary responsibility according to the DOL’s new fiduciary rule. The solution pinpoints fiduciary risk-bearing content that needs modification. In addition, it outputs a list of risk-free marketing materials the company can continue using without any modification.
The solution delivers high accuracy results even in non-trivial situations. It can be used by retirement advisory companies, regulatory lawyers, and consulting agencies to increase the efficiency of analyzing marketing materials. The solution can be easily customized to address compliance monitoring tasks in other domains.
The new DOL rules stipulate the scope of advice financial advisors can provide on individualized retirement investments and ensure that these individuals are putting their clients’ interests first when providing financial services. This change had financial firms scrambling to review their marketing and sales documents, workflows, policies, and fee/commission schedules. Learn more about how the compliance assurance process can be automated by reading case study or contacting Megaputer for a demonstration.
Benefits
