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DOL Delays Fiduciary Rule for 60 Days

On Tuesday, the Department of Labor released the final rule extending the applicability date of its fiduciary rule for 60 days following a review by The Office and Management and Budget. The rule which redefines the fiduciary standard as it pertains to retirement investment advice was originally scheduled to begin implementation on April 10th, but will extended to June 9th.

The DOL originally requested the extension at the beginning of the March in response to a memorandum issued by President Trump directing the DOL to conduct a cost-benefit analysis of the rule and to determine if it may adversely affect the ability of Americans to gain access to retirement information and financial advice.

The 60-day delay covers the expanded fiduciary rule definition, as well as the impartial conduct standards, which includes the “best interest” standard.

According to the DOL, “the basic impartial conduct standards require advisers to make recommendations that are in the customer’s best interest, avoid misleading statements, and charge no more than reasonable compensation for service.”

Compliance with the remaining conditions, such as requirements to make specific written disclosures and representations of fiduciary compliance in communications with investors, is not required until January 1, 2018.

The final rule will be published in the Federal Register on Friday.

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