The DOL has delayed the effective date of three major compliance regulations by 18 months. However, the rule is still in existence.
The arm in charge of retirement plans, the Employee Benefits Security Administration (EBSA) posted a preliminary version of a delay of applicability.
In summary from www.federalregister.gov page:
“This document extends the special transition period under sections II and IX of the Best Interest Contract Exemption and section VII of the Class Exemption for Principal Transactions in Certain Assets between Investment Advice Fiduciaries and Employee Benefit Plans and IRAs for 18 months. This document also delays the applicability of certain amendments to Prohibited Transaction Exemption 84-24 for the same period. The primary purpose of the amendments is to give the Department of Labor the time necessary to consider public comments under the criteria set forth in the Presidential Memorandum of February 3, 2017, including whether possible changes and alternatives to these exemptions would be appropriate in light of the current comment record and potential input from, and action by, the Securities and Exchange Commission and state insurance commissioners. The Department is This document is scheduled to be published in the Federal Register on 11/29/2017 and available online at https://federalregister.gov/d/2017-25760, and on FDsys.gov 2 granting the delay because of its concern that, without a delay in the applicability dates, consumers may face significant confusion, and regulated parties may incur undue expense to comply with conditions or requirements that the Department ultimately determines to revise or repeal. The former transition period was from June 9, 2017, to January 1, 2018. The new transition period ends on July 1, 2019, rather than on January 1, 2018. The amendments to these exemptions affect participants and beneficiaries of plans, IRA owners and fiduciaries with respect to such plans and IRAs. DATES: This document extends the special transition period under sections II and IX of the Best Interest Contract Exemption and section VII of the Class Exemption for Principal Transactions in Certain Assets between Investment Advice Fiduciaries and Employee Benefit Plans and IRAs (82 FR 16902) to July 1, 2019, and delays the applicability of certain amendments to Prohibited Transaction Exemption 84–24 from January 1, 2018 (82 FR 16902) until July 1, 2019. See Section G of the SUPPLEMENTARY INFORMATION section for a list of dates for the amendments to the prohibited transaction exemptions.”
The EBSA only postponed the above standards while the Fiduciary Rule remains in place. The “impartial conduct standards” remain in place. Those standards require financial service professionals to give advice in the best interest of retirement investors and charge reasonable compensation and avoid misleading statements.
Think Advisor recently put out a nicely summarized “5 New Facts on DOL’s Fiduciary Rule Delay.”
Click here to read more.