Common use of Fiduciary Rule Clause in Contracts

Fiduciary Rule. (a) To the extent the Broker/Dealer or their Representatives act as an “investment advice fiduciary,” as defined pursuant to 29 CFR section 2510.3-21, as effective June 9, 2017 (together with certain prohibited transaction exemptions (“PTEs”) added, revoked or amended in conjunction therewith and any future revisions thereto, the “DOL Fiduciary Rule”), with respect to any individual retirement annuities and to individual retirement accounts and other plans subject to Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and/or section 4975 of the Internal Revenue Code (“IRC”), (collectively, the “Covered Retirement Plans”) in connection with the purchase, holding, or disposition of a Contract, Broker/Dealer and their Representatives shall be responsible for complying with all applicable fiduciary standards and the conditions of an applicable PTE that covers the transaction or advice. In addition, to the extent that the Broker/Dealer or their Representatives rely or need to rely on a PTE that requires a “financial institution” to take responsibility for investment advice being provided to, and/or to enter into a written contract with, a Covered Retirement Plan, Broker/Dealer shall serve as such financial institution and enter into such written contract, as applicable, it being understood that neither GALIC nor GAA shall act as the “financial institution” or enter into a written contract with a Covered Retirement Plan. (b) With respect to any Contract held by or as a Covered Retirement Plan, Broker/Dealer understands that additional purchase payments made to the Contract and advice provided with respect to the Contract may be subject to the DOL Fiduciary Rule. If subject to the DOL Fiduciary Rule, Broker/Dealer shall be responsible for complying with all conditions of an applicable PTE. (c) Broker/Dealer acknowledges and agrees that GALIC and GAA shall not be required to, nor shall they, provide any investment advice, as defined under the DOL Fiduciary Rule, with respect to any Contract acquired or held by or as a Covered Retirement Plan for which the Broker/Dealer is the firm-of-record or a fiduciary under the DOL Fiduciary Rule. The Broker/Dealer further acknowledges and agrees that GALIC and GAA shall not be required, nor shall they have any responsibility, to determine if a transaction effected under a Contract was recommended by the Broker/Dealer or their Representatives or to otherwise provide any data or information regarding any Contracts or any transactions therein. (d) Broker/Dealer acknowledges and agrees that GALIC and GAA do not have any supervisory authority over, or any supervisory responsibility for, Broker/Dealer or their Representatives relating to their provision of investment advice, as defined in the DOL Fiduciary Rule, with respect to any Contract that is acquired or held by or as a Covered Retirement Plan, or compliance with applicable PTEs, notwithstanding GALIC’s maintenance of a suitability supervision system for purposes of complying with laws, rules, and regulations adopted by states and their state insurance regulatory authorities relating to the suitability of recommendations of annuity and insurance transactions. (e) With respect to any investment advice provided by GALIC or GAA (including the provision of asset allocation models or other financial analysis) related to a Contract for which Broker/Dealer is responsible under paragraph (a) above, Broker/Dealer represents and warrants that it is: (i) independent of GALIC and GAA; (ii) capable of evaluating investment risks independently, both in general and with regard to particular transactions and investment strategies; and (iii) a fiduciary under ERISA, or the IRC, or both, with respect to, and is responsible for exercising independent judgment in evaluating, any transactions involving a Contract. Broker/Dealer acknowledges that GALIC and GAA have a financial interest in the Contracts and transactions therein and are not undertaking to provide impartial investment advice, or to give advice in a fiduciary capacity, in connection with a Contract for which Broker/Dealer is the firm-of-record. Broker/Dealer acknowledges that GALIC and GAA do not receive a fee or other compensation directly from a plan, plan fiduciary, plan participant, beneficiary, or ▇▇▇ owner (as such terms are defined in 29 CFR section 2510.3-21) for the provision of investment advice in connection with a Contract for which Broker/Dealer is the firm-of-record. Broker/Dealer also acknowledges and agrees that any marketing materials provided by GALIC or GAA are not intended or designed to satisfy any disclosure provisions that may apply to the Broker/Dealer or their Representatives under the DOL Fiduciary Rule, or any disclosure conditions of any PTE.