Rule Now Expected to Become Applicable on June 9, 2017
The U.S. Department of Labor (DOL) has issued a final rule delaying the applicability date of the Fiduciary Rule, from April 10, 2017, to June 9, 2017.
On April 8, 2016, the DOL released the "Fiduciary Rule," which expanded the number of persons that are subject to fiduciary standards when they provide retirement investment advice. The rule also includes exemptions that would allow advisers to continue to receive payments that could create conflicts of interest if certain conditions are met.
On February 3, 2017, President Trump issued a memorandum directing the Secretary of Labor to:
- Determine whether the rule may adversely affect individuals' abilities to gain access to retirement information and financial advice;
- Prepare an updated economic and legal analysis concerning the likely impact of the rule; and
- If deemed appropriate, publish for notice and comment a proposed rule rescinding or revising the rule.
In response, the DOL released a proposed rule seeking to delay the applicability date of the Fiduciary Rule from April 10, 2017, to June 9, 2017.
Final Rule Implements 60-Day Delay
The DOL's new final rule affirmatively delays the applicability date of the Fiduciary Rule from April 10, 2017, to June 9, 2017. Stay tuned for more information on the status and implementation of the Fiduciary Rule.
Click here to read the final rule in its entirety.