Another day, another lawsuit — or that's how it seems since theDepartment of Labor adopted its new fiduciary requirements forretirement plan advisers and providers.

Let's see. In the financial sector alone, we've seen suitsagainst Fidelity, American Century, Franklin Templeton, Allianz,New York Life, Cetera and others, in their role as plan sponsorsor, in some cases, plan advisers. It's a great time to be aclass-action attorney.

How are you going to stay ahead of emerging legal requirements?Not only do you have to make sure that your business conforms tothe new Department of Labor regulations for retirement accounts —which take effect in April 2017 — you also have to communicate toyour clients that you are expertly and compliantly managing their401(k) and other retirement plan participants' hard-earnedmoney.

What's more, a lot of companies may find themselves on the401(k) ropes, and they present an opportunity. As an adviser, youcan help them sort through the regulations and what they need, andif desired, you can offload the investment decisions to a qualifiedprovider under the 3(38) rule. That insulates both you and the plansponsor.

The new DOL rule is about 1,000 pages long, and the governmenthas not yet completed its guidance for how the rule is to befollowed. Nevertheless, there's a lot you can do.

Here is a six-point checklist to help you prepare.

Task #1: Know YourResponsibilities as a Fiduciary

We've all heard, over and over, that being a fiduciary meansputting clients' interests ahead of your own. But how? And when?Here are the details.

As fiduciaries, you are responsible for demonstrating Care,Skill, Prudence and Diligence in:

• Selecting and maintaining investment choices;
• Ensuring that plan fees (including investment expenses) paidfrom participant accountsare reasonable; and
• Ensuring that the plan is properly administered in accordancewiththe plan document, and with ERISA and DOL mandates.

Many of the lawsuits winding through the courts today concernthe first two bullets on this list. If you are primarily pickingfrom a menu of high-cost, proprietary products when you puttogether a plan, you could be vulnerable. Time to look for a firmthat's accustomed to providing fiduciary support.

Task # 2: Find Outif Your Fees Are on the Level

One of the major changes in how advisers can practice under thenew regulations is what's called “level-fee” compensation. Whatdoes this mean? You can't gain a different level of compensationfor one product vs. another in the same category.

So if you're selling mutual funds, for instance, you will nolonger be able to accept higher payouts or trails on certain fundsand not others, nor other forms of variable payments. The same goesfor annuities, alternative investments, managed accounts or otherproducts. All members of each product category must provide thesame return to the adviser. This will help eliminate biases towardhigher-paying products, whether they are conscious or unconscious,the DOL believes.

Several products, particularly proprietary offerings, may comeinto conflict with the new rule. If you have gravitated towardnonconforming products, now is the time to start researching newinstruments you can comfortably recommend.

Task #3: Get Readyfor the BICE

Want to keep doing business as usual, whether that meanscollecting commissions on retirement accounts, using proprietaryproducts, or other practices that may be problematic under the DOLrule? You'll need to provide clients with a BICE, which stands forBest Interest Contract Exemption.

This document — which clients must sign upon opening an account— may well be the most confusing element of the DOL rule, andbroker-dealers, custodians and compliance experts are scrambling toput legal wording in place.

The BICE contract must identify any potential conflicts theadviser faces, as well as whether he or she sells proprietaryproducts or receives third-party payments tied to specificproducts. The BICE also has to affirm the client's right tocomplete fee information, and provide a web address where detailson the adviser's compensation can be found.

Sound onerous? Yes, it is. And in some cases, fiduciary advisersmay find they need a BICE — for example, when recommending that aclient roll a 401(k) into an IRA. Every adviser should have acompliance professional on speed-dial until they are comfortablewith when and how to use a BICE.

Task #4: KeepGreat Records

If you were wondering about what to do with your CRM beyondnoting clients' birthdays, ask yourself: Why aren't you using it tokeep records of client meetings, client requests, actions you takeon clients' behalf and why you're taking those action?

If your CRM is modern and integrated with your other software,why not use it to create workflows so your staff can work moreefficiently?

Compliance experts are pretty unanimous in recommendingmeticulous records for your activities once the DOL rule is inforce. These should include why you are recommending variousapproaches, how you have examined alternatives, and why yourcompensation is reasonable.

Examiners are likely to request these notes in the future.

Task #5: Keep YourCompliance Attorney on Speed Dial

The complete guidance for the DOL rule is still evolving, andwill continue to do so even as the rule goes into effect nextspring. Nevertheless, don't wait until the last minute to makechanges in your process. There's no better time than now to getready for the new fiduciary environment.

Even those advisers who already consider themselves fiduciaries(yes, I'm talking to you, RIAs) may have to change some of theirprocedures.

Task #6: ConsiderOutsourcing for Simplicity

Here's disclosure number two. At our firm, the attitude aboutthe new DOL rule is, “come on in, the water's fine.” Our legalexperts are confident that we can provide advisers with theportfolios and tools you need to satisfy the new regulations. Forexample, because of the nature of the investment instruments weuse, Efficient Advisers' portfolios are already “level-fee.”

Advisers who use us or similar firms to provide an investmentlineup for 401(k) plans, or to manage individual clients'retirement portfolios, do not have to worry about running afoul ofthis particular element of the DOL rule.

Staying up to date with the upcoming fiduciary changes will takework, but it won't be impossible. Start getting ready now and freeyourself to focus on what matters most your members.