DOL Proposes 60-Day Extension of Applicability Date Under Fiduciary Rules DOL Proposes 60-Day Extension of Applicability Date Under Fiduciary Rules

DOL Proposes 60-Day Extension of Applicability Date Under Fiduciary Rules

As anticipated, the Department of Labor has released a proposed rule that would extend the "applicability date" of the fiduciary rules issued last year by 60 days. The current applicability date is April 10, 2017. The proposed rule is scheduled to be published in the Federal Register tomorrow, March 2, 2017. The proposed extension applies to the definition of fiduciary investment advice as well as the prohibited transaction exemptions (including the Best Interest Contract Exemption) issued in conjunction with the regulatory change.
 
The proposed rule is part of the Department's response to the February 3, 2017 Memorandum, in which the President directed the Department of Labor to re-examine the final fiduciary rule and determine whether it should be revised or eliminated. Beginning tomorrow, the Department of Labor invites comments regarding (i) the proposed extension; (ii) the questions raised by the Presidential Memorandum; and (iii) questions of law and policy relating to the final rules' definition of fiduciary investment advice and the related prohibited transaction exemptions. The comment period will close on Monday, April 17, 2017.

For more information, contact Marc Sciscoe, Jasmin French or a member of our Employee Benefits group.

This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader should consult with legal counsel to determine how laws or decisions discussed herein apply to the reader’s specific circumstances.
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