DOL Fiduciary Rule Delay – Clearing the Confusion

The U.S. Department of Labor has announced a 60-day extension of the applicability dates (now effective June 9, 2017 rather than the original date of April 10, 2017) of the fiduciary rule and related exemptions, including the Best Interest Contract Exemption.

The purpose of this delay is to address the presidential memorandum announced on February 3, 2017. The DOL is to undergo a complete review of the requirements and decide whether to make or propose changes by January 1, 2018.

Proceed with the current requirements as they stand now:

  • For the period June 9, 2017 through January 1, 2018, advisers to retirement investors need to comply with the Impartial Conduct Standards, which requires advisers to:
    • Adhere to best interest standard when making investment recommendations
    • Charge no more than reasonable compensation for their services
    • Refrain from making misleading statements
  • All the exemptions, including the Best Interest Contract Exemption, are still scheduled to become effective January 1, 2018.

 

DOL News Release

 

Fiduciary Rule Webinar

 

 

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