DOL Seeks 18-Month Extension of Fiduciary Rule

Enforcement of its Conflict of Interest Fiduciary Rule was set to begin on Jan. 1, 2018, but the Department of Labor (DOL) yesterday submitted a proposal to the Office of Management and Budget (OMB) seeking amendments to three of the rule’s exemptions that would push back enforcement by 18 months to July 1, 2019.

After a Trump-era delay from April 7 to June 9 of this year, the rule now requires investment advisers to act as fiduciaries and place their clients’ interests above their own; in other words, not to just push products with the highest commissions. Enforcement was paused until 2018.

The exemptions being amended are the best-interest contract exemption; Class Exemption for Principal Transactions in Certain Assets Between Investment Advice Fiduciaries and Employee Benefit Plans and IRAs; Prohibited Transaction Exemption 84-24 for Certain Transactions Involving Insurance Agents and Brokers, Pension Consultants, Insurance Companies, and Investment Company Principal Underwriters.


NOTE: The details in this blog are provided for informational purposes only. All answers are general in nature and do not constitute legal advice. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The author specifically disclaims any and all liability arising directly or indirectly from the reliance on or use of this blog.
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