Labor Department Files Delay of Fiduciary Rule

The Department of Labor has officially filed a rule with the Office of Management and Budget intended to delay its fiduciary rule for 18 months until July 1, 2019. If the rule is approved by the OMB, the agency will return it the DOL to make it public.

Earlier this summer, the Office of Management and Budget approved a proposal by the Department of Labor to delay implementation of the remaining provisions of the agency’s fiduciary rule for 18 months. The rule’s initial implementation began on June 9th with the remaining provisions, including the controversial best interest contract exemption, scheduled to take effect on January 1, 2018.

At the time, the OMB concluded its review in less than one month, a process which typically takes up to 90 days to complete.

The DOL proposed extending the applicability dates of three exemptions, including the best interest contract exemption (PTE 2016-01); the class exemption for principal transactions (PTE 2016-02); and the prohibited transaction exemption involving insurance agents and brokers (PTE 84-24).

The fiduciary rule expands the definition of investment advice fiduciary and is currently under review as ordered by President Trump. Labor Secretary Alexander Acosta and SEC Chairman Jay Clayton have pledged to worked together on a uniform standard of the rule.

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