Expert: DOL Rule To Force Agents To Consider E&O Coverage
June 10, 2016 by Cyril Tuohy
Sweeping changes affecting financial advice for retirement accounts will force thousands of agents and financial advisors to consider errors and omissions coverage or leave the business, a former Department of Labor investigator said Wednesday.
Errors and omissions coverage wasn’t necessary for wealth managers, broker/dealers, commission-based advisors and independent agents because they were considered nonfiduciary advisors. But now they will be swept under the DOL’s Conflict of Interest rule, the expert said.
“Either they’ll have to consider the insurance or get out of the business,” said Samuel A. Henson. He is vice president and director of legislative and regulatory affairs, retirement services, with Lockton, a global insurance broker based in Kansas City.
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