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What are the requirements of the Best Interest Contract Exemption (BIC Exemption)?

There are several requirements:

  1. You must acknowledge to clients that you are a fiduciary.
  2. You are required to adhere to impartial conduct standards such as:
    • Receive reasonable compensation
    • Deliver prudent advice
    • Provide IRA clients with a written Best Interest Contract
  3. Adhere to policies and procedures that meet reasonable standards.
  4. Prohibit receipt of sales incentives that jeopardize your ability to be free of conflict.
  5. Disclose fees and compensation.
  6. Refrain from conflicts of interest.
  7. Adhere to special document requirements for rollovers.