January 19, 2022

Volume XII, Number 19

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January 18, 2022

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Talking Through the DOL’s Proposed Prohibited Transaction Exemption, Episode 3: The 84-24 Exemption [PODCAST]

On June 29, the Department of Labor (DOL) issued a proposed prohibited transaction exemption, filling the void left when the Fifth Circuit vacated the Obama-era 2016 DOL regulation in 2018. While the new proposed rule is primarily a class exemption that harmonizes ERISA conditions for receiving commissions and other variable compensation with existing securities law standards, it also does a lot more. In this podcast episode, Faegre Drinker’s Jim Jorden and Brad Campbell discuss how an existing PTE — PTE 84-24 — may impact the future use of this proposed PTE.

In this recording, Jim and Brad provide context, insight and actionable advice for stakeholders on the following questions (and more) related to the proposed PTE.

  • How might insurance companies and agents use the new proposed exemption?

  • Would independent agents find the 84-24 exemption to be a more user-friendly and expedient exemption to use in most cases?

  • What changes can DOL implement to make the proposed exemption a more useful resource?

  • The prelude includes some ambiguities on how the “regular basis” component of the five-part test for the investment adviser definition can be met, particularly as it pertains to sales advice. What should the DOL be expected to clarify as it responds to public comments on this proposed rule?

In our next podcast, we will take a close look at litigation and enforcement issues that could emerge from this proposed PTE.

© 2022 Faegre Drinker Biddle & Reath LLP. All Rights Reserved.National Law Review, Volume X, Number 233
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About this Author

James F. Jorden Securities Litigation Drinker Biddle Law Firm
Partner

James F. Jorden represents many of the country’s largest financial institutions in securities, corporate, and pension litigation. He is experienced in national class action litigation, having served as lead or associate counsel in more than 100 securities, insurance, RICO, and other class actions. Over the past 20 years, Jim has been lead trial counsel in more than 50 individual cases in federal and state courts throughout the United States. He has argued before the United States Supreme Court, eight of the U.S. circuit courts, and numerous state courts of...

202-230-5228
Bradford Campbell Labor & Employment Attorney Faegre Drinker Biddle & Reath Washington, D.C.
Partner

Bradford Campbell is a nationally recognized figure in employer-sponsored retirement plans who leverages his prior experience as the U.S. Assistant Secretary of Labor for Employee Benefits to advise clients across a broad range of issues related to the Employee Retirement Income Security Act (ERISA). As ERISA’s former “top cop” and primary regulator, Brad has detailed and wide-ranging knowledge of the structure and operation of ERISA plans, insight that he applies to client engagements.

Brad advises financial service providers and plan sponsors, particularly in relation to ERISA...

202-230-5159
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