What is a BIC exemption?
faq 2020-01-15

The final fiduciary rule includes a BIC exemption that allows advisers to continue to be paid on commission. To qualify for the exemption, the adviser’s firm will have to:

• Acknowledge that they and the adviser are fiduciaries and that they are working in their clients’ best interests.

• Adopt policies to ensure that all advice meets impartial conduct standards, including ensuring that adviser compensation practices do not encourage inappropriate recommendations.

• Disclose important information about the adviser’s services, fees and compensation.

• Agree, in the case of IRAs, that the firm and their advisers will adhere to these requirements in a written contract that is enforceable by investors.

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