DOL Proposes 60-Day Delay of Fiduciary Rule
Until Further Action, Rule to Become Applicable on April 10, 2017
The U.S. Department of Labor (DOL) has issued a proposed rule seeking to delay the applicability date of the Fiduciary Rule, which is set to become applicable on April 10, 2017.
Background
On April 8, 2016, the DOL released a final rule (“Fiduciary Rule”) expanding the number of persons that are subject to fiduciary standards when they provide retirement investment advice. The rule—which is set to become applicable on April 10, 2017—also includes exemptions that would allow advisers to continue to receive payments that could create conflicts of interest if certain conditions are met.
On February 3, 2017, President Trump issued a memorandum directing the Secretary of Labor to:
- Determine whether the rule may adversely affect individuals’ abilities to gain access to retirement information and financial advice;
- Prepare an updated economic and legal analysis concerning the likely impact of the rule; and
- If deemed appropriate, publish for notice and comment a proposed rule rescinding or revising the rule.
Shortly thereafter, the DOL publicized its intention to “consider its legal options to delay the applicability date as we comply with the President’s memorandum.”
Proposed Delay
The DOL’s proposed rule seeks to delay the applicability date of the Fiduciary Rule from April 10, 2017, to June 9, 2017. Until this proposal is finalized, however, the Fiduciary Rule is generally set to become applicable on April 10, 2017.
Click here to read the proposed rule in its entirety.
