The Department of Labor Seeks to Delay the Applicability Date of the Fiduciary Rule by 18 Months
From the Desk of Jim Eccleston at Eccleston Law LLC:
The Department of Labor’s delay of the applicability date will extend the full implementation of the Fiduciary Rule from January 1, 2018 to July 1, 2019. The Department’s decision was publically announced by Labor Secretary Alexander Acosta during a recent court appearance. Secretary Acosta’s appearance in court stemmed from a case brought against the Department by Thrivent Financial for Lutherans.
In court, Secretary Acosta testified that he had submitted to the Office of Management and Budget proposed amendments to three exemptions of the Fiduciary Rule. These three exemptions include the best-interest contract exemption; the class exemption for principal transactions in certain assets between investment advice fiduciaries and employee benefit plans and IRAs; and prohibited Transaction Exemption 84-24, which deals with annuities.
Moreover, Secretary Acosta stated that the proposed amendments will inevitably extend the transition period and delay the applicability date of the Fiduciary Rule.
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