A previous blog released by Pension Consultants, “DOL Fiduciary Rule is Here – Are You Prepared?” communicated that the Department of Labor’s (DOL) Conflicts of Interest Rule (also known as the Fiduciary Rule) would be implemented on June 9th of this year. However, On November 27th, 2017, the DOL announced the Final Fiduciary Ruling will be delayed until July 1st, 2019.
The official extension was released in the November 29th edition of the Federal Register 2017-25760. 1 The DOL stated that it is granting the delay to meet concerns with applicability dates, and consumer confusion.
The proposed rule did not face changes and fiduciaries will still be required to comply with the rule and meet the provisions outlined in the Impartial Conduct Standards (ICS), that took effect on June 9th, 2017. As a plan fiduciary, the goal should be to deliver a top-performing plan to employees with low fees, excellent service, and adherence to the ICS. The ICS requires the following: 2
-Advice must be in the best interest of the customer
-Fees must be reasonable
-Misleading statements regarding investment transactions, compensation, or conflicts of interest are not permitted
The DOL will continue to review the Fiduciary Rule over these next 18 months. As updates develop, Pension Consultants will continue to report on this ongoing process. If you have concerns about meeting the Fiduciary Rule or the ICS standards, email our ERISA Services Team for more information, or call 800-234-9584.