The U.S. Department of Labor (DOL) proposes to delay the rule defining who is a fiduciary and related prohibited transaction exemptions (PTEs) for 60 days. The Conflict of Interest rule, which would require all financial advisers to act in the best interests of their clients, has an initial applicability date of April 10, 2017.
On February 3, 2017, President Trump directed the DOL to examine whether the final fiduciary rule may adversely affect the ability of Americans to gain access to retirement information and financial advice, and to prepare an updated economic and legal analysis concerning the likely impact of the final rule as part of that examination. The extension would make it possible for the DOL to take additional steps (such as completing its examination, implementing any necessary additional extension(s), and proposing and implementing a revocation or revision of the rule) without the rule becoming applicable beforehand. The intention is to spare advisers and investors the risk and expenses of facing two major regulatory changes.
The proposed 60-day delay would be effective on the date of publication of a final rule in the Federal Register.
Comments on the proposed delay are due March 17, 2017.
Comments on the Presidential Memorandum and law and policy concerning the Conflict of Interest final rule and PTEs are due April 17, 2017.