The Department of Labor today announced a temporary enforcement policy on prohibited transaction rules applicable to investment advice fiduciaries. This much-needed relief will help bank fiduciaries ensure that their compliance efforts do not run afoul of the prohibited transaction requirements of the Employee Retirement Income Security Act, and comes as a result of the Fifth Circuit’s decision earlier this year to vacate the fiduciary rule in its entirety.
Under the policy, banks and other financial institutions that were relying on their good-faith compliance with the fiduciary rule (including the impartial conduct standards of the best interest contract exemption) may continue to rely on this good-faith compliance without DOL enforcement action, and pending further guidance from DOL. For more information, contact ABA’s Tim Keehan.
