The Alternative Direct Investment Securities Association and the Investment Program Association, two industry trade groups representing the alternative and direct investment industry, are advising their members to support the proposed fiduciary rule delay announced by the Department of Labor last week.
The fiduciary rule is currently scheduled for implementation on April 10, but the proposed delay would extend the applicability date for 60 days until June 9th. The DOL said that additional time is needed to complete the comprehensive cost/benefit analysis ordered by President Trump on February 3rd.
The DOL is accepting public comments on the proposed extension until March 17th. Both the IPA and ADISA are providing its members with one-click letter submission tools on their respective websites for those who would like to participate.
“It’s a shame, but perhaps unavoidable that there has been so much confusion on the issue,” said ADISA executive director/CEO John Harrison. “Ultimately, the next couple of weeks will determine whether or not there will be a delay, and then – if there is – the debate and further analysis of the effect of the rule will continue.”
ADISA posted a sample letter for members to tailor and send to the DOL to support the delay. Click here to view the letter.
“The IPA will submit comments on the 60-day extension prior to the March 17 deadline,” said Tony Chereso, president and chief executive officer. “We will also be actively working with our members to submit their own comments, ensuring that we amplify our voice throughout this critical process.”
This week, the IPA is expected to provide members with its comment letter, which can be used to support member firm letters, it said. In addition, a mobile-friendly letter writing tool will be available on the IPA website.
The fiduciary rule attempts to reduce conflicts of interest in retirement investment advice and redefines who is considered an investment advice fiduciary under the Employee Retirement Income Security Act of 1974. According to the DOL fiduciary rule, all who provide retirement investment advice to plans, plan fiduciaries and IRAs are required to abide by a “fiduciary” standard.