After more than six years of work, much anticipation, and monumental changes in the financial industry in preparation, the Department of Labor’s Conflicts of Interest Rule (also referred to as the Fiduciary Rule) is set to become applicable on April 10th, 2017. However, it is unlikely that this fledgling rule will ever actually see the light of day.
In early February, the President signed an Executive Memorandum directing the Department of Labor (DOL) to reconsider the rule. The DOL has since filed with the Office of Management and Budget (OMB) to delay the rule for 180 days and to hold another public comment period. Once approved by the OMB, there will be a short public comment period before the 180-day delay becomes official.
Once the delay goes into effect the DOL will begin the work of reconsidering the rule, and potentially either revising it or rescinding it all together. It’s unclear what the result will be, however, in some respects the financial industry has already taken permanent steps toward holding itself to a higher standard and doing what is in the best interest of investors.
If you have questions about how the uncertain future of the Fiduciary Rule may affect participants in your retirement plan, or how your Plan’s service providers may be impacted, contact our ERISA Services Team at ERISA@pension–consultants.com.