Fiduciary rule may be delayed until 2019

Written on Aug 10, 2017

It could be 2019 before the remaining elements of the Department of Labor (DOL) fiduciary rule take effect, according to an ERISA expert and attorney.

ERISA legal expert Bruce Ashton believes the DOL will push the implementation off beyond next year.

Expect the Labor Department to consider modifications, which would then be required to go through the regulatory process, Ashton said during a Financial Planning webinar. Once Labor submits revisions to the regulation, a 60-day comment period is required. All together, “I’m guessing it will take around 12 months,” Ashton said, “and there may be another transition period after that for firms to react and come into compliance.”

Ashton said changes to the best interest contract exemption are likely. Specifically, the DOL may undo BICE requirements of a contract with clients—which would be the basis of any class-action lawsuits—and disclosures on firm’s websites. Rules on advisor compensation could also be eased.

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