The Labor Department today issued a series of frequently asked questions on its final rule redefining who counts as a fiduciary under the Employee Retirement Income Security Act and Internal Revenue Code. The FAQs — which represent the first guidance issued by the department on the fiduciary rule — address questions received by DOL from the industry since the rule was issued, and are intended to offer additional clarity about the rule and what institutions must do to comply.
As a result of ABA’s advocacy, the DOL in question 20 addressed bank networking arrangements with bank-affiliated broker-dealers, stating that they are exempt from coverage under the fiduciary rule and that such arrangements fall within the “hire me” exclusion. Banks have until April 2017 to comply with the Best Interest Contract exemption of the rule and until Jan 1, 2018, to comply with the entire rule.
