U.S. Secretary of Labor Alexander Acosta decided not to further delay the implementation date of the Fiduciary Rule. In a Wall Street Journal op-ed, Mr. Acosta explained that the Department of Labor ("DOL") found no legal basis for further delay of the effective date, but would seek additional public input on the rule.
The Fiduciary Rule sets standards for determining who is a fiduciary of an employee benefit plan under ERISA by virtue of giving investment advice to a plan, its participants or its beneficiaries. The Fiduciary Rule standards also apply to determining who is a fiduciary of a plan under Section 4975 of the Internal Revenue Code. As a result of the DOL's decision, the rule will go into partial effect on June 9, 2017, and will be fully implemented on January 18, 2018 (see previous coverage).
SIFMA president and CEO Kenneth E. Bentsen, Jr. expressed disappointment at the DOL's decision not to delay the implementation of the Fiduciary Rule until a comprehensive review was completed, but added that he appreciated Secretary Acosta's intention to solicit public input:
"While we are disappointed that the Department of Labor has chosen not to further delay the rule until the Department has completed a review of the entire rule's impact on investors, we appreciate Secretary Acosta's recognition of the rule's negative impact and his desire to seek public input."
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
