DOL Fiduciary News: September 26, 2017

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Where does the fiduciary rule leave mutual funds?

Financial Planning; September 25 2017, 5:12pm EDT

The second phase of the Department of Labor's fiduciary rule has been pushed back to July 2019, but the changes it has inspired — particularly in the mutual fund industry — are moving ahead, albeit slowly.

"This is going to be an evolution over time, but we don't see it being a wholesale change to one share class," says Keith McRedmond, managing director of business development for Russell Investments' U.S. advisor business.

How the rule itself might evolve remains uncertain, as the DoL is still conducting a regulatory review ordered by President Trump. However, the department hinted at one possibility with direct implications for mutual funds.

In a Federal Register filing, it announced that it "anticipates it will propose in the near future a new and more streamlined class exemption built in large part on recent innovations in the financial services industry."
(https://www.financial-planning.com)