DOL Fiduciary News: August 15, 2017
Please Note:
These links will take you directly to the homepage of the website that features the article.
To reach the article directly, copy and paste the article title into the search feature on the homepage of the publication website.
FAs and Investors at Odds in DOL Rule Comments
Financial Advisor IQ; Aug 11, 2017
While the Department of Labor’s fiduciary rule has its advocates within the industry and the investor community, analysis of the 503 submissions during a recent round of public comments indicates the DOL’s latest decision to seek an 18-month delay of the rule’s full implementation may be a victory for many advisory firms and other industry stakeholders opposing the rule. Analysis by FA-IQ shows that those who lobbied for a reprieve mostly did so either because they oppose the need for the rule at all or are against certain components of the rule – particularly those they consider costly to implement or fear could expose advisors to excessive litigation.
Two days after the DOL closed its latest official comment period on its fiduciary rule, the department has now officially submitted a proposed extension of the rule’s transition period to the Office of Budget and Management. While the rule is presently due for full implementation on January 1, 2018, the DOL now wants the transition period to last until July 1, 2019. The rule was partially implemented on June 9.
(http://www.financialadvisoriq.com)
CUNA supportive of DOL’s proposed 18-month fiduciary delay
CUInsight; August 11, 2017
CUNA is pleased that the Department of Labor (DOL) appears to have considered its request for a delay to the implementation of its fiduciary rule. In a DOL brief filed this week in the lawsuit by Thrivent Financial for Lutherans challenging the rule, the agency indicates that it is proposing an 18-month delay for the rule.
CUNA has sent a number of comment letters urging DOL to delay the implementation of its fiduciary rule to give credit unions time to resolve compliance ambiguities. The rule defines who is a fiduciary of an employee benefit plan.
The DOL indicates in the brief that it has submitted a proposal to delay implementing the remaining parts of the fiduciary rule for 18 months to the Office of Management and Budget. Pending approval by the OMB, the effective date would be pushed to July 1, 2019, back from the current Jan. 1, 2018 date.