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DOL Fiduciary News: July 21, 2017

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Analysts: DOL Rule Could Be Pushed Out to 2020

InsuranceNewsNet; July 20, 2017

One possible scenario has the Department of Labor delaying the phase two effective date of its fiduciary rule by one year, and giving financial services a year beyond that to comply.

That would push the effective date from Jan. 1, 2018 to Jan. 1, 2020. Bradford P. Campbell, counsel at Drinker Biddle & Reath, agreed the timeline seems plausible.

"I think that is a reasonable time to gather the data and do the review work that the president has ordered," Campbell said during a webcast today. "A year is sort of the minimum that you would need to be able to do all that work."

ACLI, IRI Back Roe-Roskam Fiduciary Rule Alternative Bill 

ThinkAdvisor; July 20, 2017

Life groups are praising two Republican lawmakers' effort to replace the U.S. Department of Labor fiduciary rule regulations with a new, statutory sales and marketing standard.

The American Council of Life Insurers (ACLI) and the Insured Retirement Institute (IRI) have put out statements supporting H.R. 2823, the "Affordable Retirement Advice for Savers Act" bill.

H.R. 2823 was introduced by Rep. David Roe, R-Tenn., and Rep. Peter Roskam, R-Ill.

Fiduciary Rule Request for Information Deadline Friday 

InsuranceNewsNet; July 20, 2017

Agents, financial advisors and other representatives of the financial services industry have until 11:59 p.m. Friday to comment on delaying implementation of provisions of the Department of Labor’s fiduciary rule.

...More than 40 comments had been received as of Thursday afternoon.

Friday marks the end of a two-week period for the DOL’s request for information to delay the second phase of the rule’s implementation. 

DOL regulation translates into pay cut for some advisers 

InvestmentNews; July 20, 2017 @ 12:24 pm

The Department of Labor's fiduciary rule has morphed into a pay cut for some advisers, who are left wondering whether a reduction in their compensation is being used to bolster the bottom lines of the broker-dealers with which they work.

Sure, it would be rather cynical to say that firms are taking advantage of the new fiduciary rule, meant to eliminate potential conflicts brokers face when recommending one product to clients rather than another. The rule is meant to do good for investors, so how could it be twisted to the detriment of advisers?

The brokerage business can be a cynical business. Just think of the dotcom bomb of 2000 and the credit crisis of 2008. In both instances brokers sold securities they didn't understand to chase fat commissions.

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