Over the course of our consultations, it was clear that the implementation issues are different for GRS and GB, and that we will need more time to ensure a successful roll-out of G19 for all stakeholders. As a result, the implementation schedule has been revised as follows:
- GRS: Direct compensation for new GRS sales will be disclosed to contract holders beginning July 1, 2019, and annual compensation disclosure to contract holders to begin in 2020.
- GB: Direct compensation for new GB sales will be disclosed to contract holders beginning January 1, 2020, and renewal compensation disclosure to contract holders will begin in 2021.
We anticipate that plan sponsors, who may not currently receive compensation information, may come to expect more information on how their advisor is paid as the disclosure practices come into effect. The industry is committed to supporting advisors through the G19 implementation and any further changes that may emerge over time as the market expectations about compensation transparency continue to evolve.