On November 24, DoL extended fiduciary rule exemptions by 18 months.
- Provided 18-month delay of applicability date of three exemption provisions in rule.
- Followed August 31, 2017 extension proposal when rule wasn't delayed.
- After a review of comments received, DoL adopted proposed delay without change.
- Extend transition period, delay applicability date from January 1, 2018 to July 1, 2019.
- Delay of applicability included the best interest contract Exemption (PTE 2016-01).
- Covered provision of a class exemption, for principal transactions in certain assets
between advice fiduciaries, with employee benefit plans and IRAs, (PTE 2016-02).
- Also prohibited trade exemption for insurance agent, brokers, pension consultants,
insurance companies, and investment company principal underwriters (PTE 84-24).
Impartial Conduct Standard
- May continue to give prudent advice in retirement investors’ best interest, charge
no more than reasonable compensation, avoid misleading statements by advisers
- Advisers who rely on exemption in period, must meet impartial conduct standards.
Reexamine Fiduciary Rule
- Delay gives DoL time to review changes to the fiduciary rule and PTEs as a result.
- Impact of reexamination is unknown until completion, may give better alternative.
- SIFMA approved delay, said SEC should take the lead in coordination with the DOL
to develop such a principles-based standard of conduct for the benefit of investors.
- DoL approved 18-month extension with no change, in November 29, 2017 federal register.