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.