The Department of Labor (“DOL”) has submitted a proposal to the Office of Management and Budget (“OMB”) for a delay on implementing the remaining requirements of their fiduciary rule (“DOL Rule”) until July 1, 2019, which is currently scheduled to go into effect on January 1, 2018. The delay request is applicable to the following three exemptions under the DOL Rule:
- The Best Interest Contract Exemption;
- The Class Exemption for Principal Transaction in Certain Assets Between Advice Fiduciaries and Employee Benefit Plans and IRAs; and
- The Prohibited Transaction Exemption for Certain Transactions Involving Insurance Agents and Brokers, Pension Consultants, Insurance Companies, and Investment Company Principal Underwriters.
On June 9, 2017, a portion of the fiduciary rule went into effect, which expanded the definition of fiduciary and provided availability to rely on new exemptions, while only having to adhere to the exemptions’ “impartial conduct standards” requirements.
Once reviewed and approved by the OMB, the proposal will be published in the Federal Register.
For more information on the above or how the DOL’s Fiduciary Rule impacts investment advisers and broker-dealers please contact us at (619) 278-0020, or email firstname.lastname@example.org. Thank you.