PTE 2020-02 has become one of the most important compliance frameworks shaping how we, as financial advisors, document rollover recommendations for clients. Navigating the new fiduciary documentation requirements is not just about satisfying the Department of Labor—it's about protecting our practices, maintaining client trust, and ensuring our recommendations truly stand up to regulatory scrutiny. Below, we break down what you need to know, what the DOL expects you to document, how timing works, and steps to streamline this process for your business.

Why PTE 2020-02 Documentation Is Now Critical

The DOL's 2024 amendments—effective September 23, 2025—have brought new clarity, but also new urgency, to fiduciary documentation. Noncompliance risks are real, ranging from the loss of exemption and civil penalties to audits that can disrupt your business. For independent advisors, solo practitioners, and compliance teams, getting this right is no longer optional.

The Core Documentation Requirements Under PTE 2020-02

PTE 2020-02 set out a clear framework for fiduciary documentation. Here's what you must specifically produce and deliver when making any rollover or account change recommendation:

1. Written Fiduciary Acknowledgment

What's required? An affirmative statement, in writing, that you and your institution are acting as fiduciaries. Conditional or hedged language (e.g., "may be a fiduciary") is no longer compliant.
When? By the time advice is given or before any related compensation is received—whichever comes last.
Our tip: Standardize this as the first page of your disclosure pack or include in your initial client engagement agreement.

2. Statement of Care and Loyalty Obligations

Care: Show that your recommendation is based on the client's financial situation, goals, and risk tolerance—and that you used skill, prudence, and diligence.
Loyalty: Make it clear you act in the client's best interest, avoid conflicts (or disclose them fully), and do not recommend anything that benefits you over the client.
Model language from the DOL can help, but always tailor to your actual practice and compensation structure.

3. Full Disclosure of Material Facts

Compensation: Disclose every dollar you and your firm stand to earn from the recommendation (not just ranges or max fees).
Conflicts of interest: Spell out any arrangements—like custodial platforms or third-party incentives—that could influence your recommendation.
Service scope: Make it clear whether you are providing full planning, one-time rollover advice, or ongoing services (and what is not included).
Investment types: Detail what investment options, services, and fees would be available both in the current plan and in the new account or IRA.

4. Rollover-Specific Reasoning (When Recommending a Rollover)

Clearly document why you are recommending the rollover. This must include a side-by-side comparison of fees, investment options, services, and other relevant features.
Articulate why leaving assets in the plan is either not in the client's best interest, or why the proposed IRA or plan is superior based on their needs.

Supporting Audit Trails and Compliance Reviews

All this documentation must be maintained—digitally or physically—for at least seven years. Auditors will want to see your process, not just your outcomes, so you'll need to prove how each recommendation met the impartial conduct standards:

No misleading statements—everything clear and accurate
Only reasonable compensation accepted
Thorough documentation of your analysis and decision
Transparency about loyalty and care obligations

Timing and Method: When and How to Deliver Disclosures

PTE 2020-02 builds some flexibility into timing—but it's important to get it right:

Disclosures must be delivered by the later of the recommendation date or the compensation eligibility date.
Digital delivery: Email or client portal distribution is fine, as long as you document the date and how it was delivered.
Client acknowledgment: Not strictly required in writing but strongly recommended. A signed receipt or digital acknowledgment protects both you and your client.

The Annual Retrospective Review Requirement

Each year, your firm's executive or compliance officer must certify an internal review of all PTE 2020-02 activities. This is a practical compliance audit that proves you are following the rules, providing all required disclosures, and documenting your analysis methodically.

Documentation must be complete and retrievable for retrospective review.
If any prohibited transactions or errors are found, you must promptly correct them and report as needed.

Common Advisor Mistakes to Avoid

Using conditional fiduciary language: Always state your fiduciary status unambiguously.
Generic fee ranges: Disclose actual, client-specific fees.
Overlooking conflicts of interest: Err on the side of disclosure, even if arrangements seem minor.
Poor analysis documentation: Always include a thorough comparison and rationale for your advice, not just the end recommendation.
No audit trail: Time-stamp and archive all documents and delivery receipts.

Systematizing Your Documentation Process

A haphazard approach to documentation increases your compliance risk and makes regulatory reviews stressful. Here's how we suggest you put a reliable system in place:

Create Standard Disclosure Templates

Build templates for fiduciary acknowledgment, care and loyalty statements, and material disclosures based on DOL model language and tailored to your fee structure and services.
Review and update these annually, or whenever regulations change.

Follow a Structured, Repeatable Analysis Workflow

Collect all relevant client information up front—financial picture, needs, investment objectives, risk tolerance.
Use a documented step-by-step process for both plan and proposed IRA/plan analysis.
Store all rationale and calculations so a regulator can see how you reached your conclusion.

Automate Documentation Where Possible

Manual rollover analysis and disclosure preparation can take hours for each client. DOL-compliant automation can reduce this to minutes and ensures that nothing falls through the cracks. With our audit-ready workflow, you pull Form 5500 plan data, compare fees and services, and generate a professional PDF—saving time and lowering your risk of human error.

Document Delivery and Acknowledgment

Log every step: when, how, and to whom disclosures were sent; when the recommendation occurred; and any client responses.
Set up email confirmations or e-signatures to create robust audit trails.

Schedule and Track Your Annual Reviews

Book your annual retrospective review on your compliance calendar.
Assign responsibility for regular audits—don't wait until deadlines or regulatory exams appear.

Resources for Further Compliance Guidance

If you're looking to see how recent changes to Department of Labor forms (like Form 5500) interact with your rollover documentation, our previous blog on how Form 5500 reporting changes impact rollover analysis compliance dives deeper into this topic and may be valuable for your team.

The Takeaway: Documentation Is Protection—For You and Your Clients

The new PTE 2020-02 requirements might seem dense or overwhelming at first, but robust documentation is the best shield we have against regulatory, legal, and reputational risk. It moves beyond simply checking regulatory boxes—thorough analysis and complete disclosures serve our clients' interests and our own by proving we uphold the fiduciary standard in everything we do.

If your documentation system feels outdated or fragmented, now is the time to revisit your process before full compliance becomes mandatory. When we automate the heavy lifting and follow a methodical approach, Form 5500 data, real fee benchmarking, and audit-ready reports become routine, not a hassle—so you and your clients are always protected.

Want to see what streamlined, audit-ready rollover documentation looks like? Explore our resources and try the automation we use ourselves at Simple Advisor Tools. No lengthy onboarding, no sales call, just a professional workspace built for financial advisors who value both compliance and efficiency.

What Financial Advisors Need to Know About PTE 2020-02 Fiduciary Documentation Requirements