As the Department of Labor continues its review of the Obama-era fiduciary rule, DOL has finalized its plans to extend to July 1, 2019, the compliance date for certain exemptions to the rule. The extension would apply to the best interest contract exemption, principal transaction exemption and prohibited transaction exemption 84-24. DOL granted the extension to ensure it will have sufficient time to consider public comments submitted in response to an executive order by President Trump earlier this year, which ordered that the fiduciary rule be re-examined for possible repeal or revision.
The delay marks an important advocacy victory for the American Bankers Association, which has long called on DOL to extend the effective date for the exemptions to allow bankers more time to comply. In addition, DOL also extended temporary enforcement relief from field assistance bulletin 2017-02 until July 1, 2019, as ABA also advocated. Prior to that date, the department will not pursue claims against fiduciaries who are working diligently and in good faith to comply with the fiduciary rule and applicable provisions of the exemptions. For more information, contact ABA’s Tim Keehan.
