DOL Requests to Further Delay Fiduciary Rule

The US Department of Labor (the “DOL”) is seeking to extend the remaining implementation of the Fiduciary Rule that was scheduled to go into effect January 1, 2018 (“Phase 2”) by 18 months.  Phase 2 would include full implementation of the Best Interest Contract Exemption (the “BIC” Exemption).  In addition, certain fiduciaries could avoid the full BIC requirements if they only charge a “level fee.”  Many investment advisers could avail themselves of the level fee exemption, but others would find the requirements challenging (such as those advisers that charge different fees for managing different asset classes).

There is currently limited information on the delay requested by the DOL.  Details are expected shortly, but regardless, it looks as if the full BIC requirements are being pushed back, as we expected.  MarketCounsel believes that the 18 months places Phase 2 in jeopardy, either for SEC intervention or for political fodder.

As always, members of MarketCounsel’s compliance management programs can find more information on the DOL Rule and its implementation on RIAglass by searching for other articles on the topic.

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