March 2, 2017

Department of Labor Proposes 60-Day Delay in Applicability of the Fiduciary Rule

At Arnerich Massena, we are proud that we have always been ahead of the curve on this issue, acknowledging fiduciary status since our inception and offering independent, unbiased advice to retirement plans. We will continue to acknowledge our fiduciary status and work in the best interest of plan participants.download movie The 5th Wave

The Department of Labor’s (DOL) fiduciary rule was set to go into effect on April 10, 2017, but it looks like that may be delayed. Following the Presidential Memorandum issued on February 3, the DOL has now proposed a 60-day extension of applicability to the rule to allow the organization time to complete the requested analysis. This would push the effective date to June 9, 2017, welcome news for financial services companies struggling to meet all of the requirements of the new regulations by April 10.

The DOL suggests that the extension will prevent financial services organizations from having to change twice if the analysis leads them to rescind or revise the regulation. The organization believes that it will take longer than the next 45 days to evaluate the regulation and make a determination. They were instructed by the Presidential Memorandum to conduct a comprehensive analysis of the rule and its impacts.

The DOL will be taking the next 15 days to collect comments on their extension proposal, while accepting comments on the rule itself over the next 45 days. As the process continues, we will continue to provide updates on the status of the fiduciary rule.

To read the DOL’s posting in the Federal Register and proposed extension, visit:

https://s3.amazonaws.com/public-inspection.federalregister.gov/2017-04096.pdf