IPA Comments on DOL Fiduciary Rule Decision
The Investment Program Association, a trade organization representing the direct investment industry, commented on the recent decision by the Department of Labor to begin implementing the fiduciary rule on June 9 – rather than further delay the regulation that redefines who is considered an investment advice fiduciary. The best interest contract exemption will not take effect until January 1, 2018.
“Throughout the DOL’s rulemaking process, the IPA worked to ensure that the final rule supports investor choice and addresses the business needs of our membership,” said Anthony Chereso, president and chief executive officer. “We successfully argued that the original asset list should be removed, protecting REITs and BDCs as acceptable assets that can be sold under the new rule.”
He added, “The fact that these offerings can be sold under the final rule has not changed. Given that the rule as written will be effective on June 9th, IPA members should be comfortable knowing they can include these portfolio diversifying investments in their client’s portfolios.”
The IPA also said that it will work with its partners and the DOL to improve the rule so that non-traded direct investment products remain available for all investors.