DOL releases final rule delaying fiduciary implementation

Under the measure, the April 10 applicability date will be pushed back to June 9

Apr 4, 2017 @ 5:48 pm

By Mark Schoeff Jr.

The Department of Labor released a final rule Tuesday delaying the implementation of its fiduciary duty regulation.

Under the delay measure, which was posted on the Federal Register website, the fiduciary rule's April 10 applicability date is pushed back to June 9.

The delay is scheduled to be published in the Federal Register on Friday, April 7, and will take effect immediately.

The postponement means that the expanded definition of who is a fiduciary when giving advice to clients in retirement accounts as well as the impartial conduct standards will become applicable on June 9. Written disclosure requirements and the full best-interest contract exemption are still scheduled for Jan. 1, 2018, implementation.

The DOL is seeking the delay in order to reassess the rule as called for in a Feb. 3 directive from President Donald Trump, who told the agency to modify or repeal the regulation if it was projected to limit investors' access to financial advice or cause an increase in litigation for firms.

Further delay is expected as the DOL conducts its review.

(More: The DOL rule from all angles)

Opponents of the rule say it is too complex and costly, and have a key ally in Mr. Trump.

Proponents of the rule, which would require financial advisers to act in the best interests of clients when giving retirement investment advice, say the measure is needed to protect the public from conflicted advice that leads to the sale of inappropriate, high-fee investments that erode savings. Backers of the DOL rule are asserting the Labor Department is rushing the rulemaking process for the delay.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

Advisers beware: tax law has unintended consequences

Commission accounts could be preferable for some clients, and advisers could be incentivized to move from employee broker-dealers to independent channels.

Recommended Video

Path to growth

Latest news & opinion

Tax reform: 7 essential strategies for financial advisers

While advisers face the difficult task of analyzing the law's impact, they will also have a significant opportunity to prove their value by implementing money-saving strategies for clients as well as their own businesses.

Bill requiring fiduciary disclosure reintroduced in New Jersey

Measures would obligate financial advisers to tell clients they do not have to act in their best interests.

Merrill Lynch to let advisers text with clients

Texting has been a popular mode of communication for years, but in the past the firm's regulations have prevented advisers from using it.

Bear market for bonds has arrived, Gross says

10-year Treasury rate's move above 2.5% confirms outlook for fixed income, legendary bond manager says.

Mary Beth Franklin's advice for optimizing Social Security claiming strategies

InvestmentNews' retirement guru Mary Beth Franklin offers strategies you can put into place that may significantly increase your clients' Social Security draw.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print