DOL Extends Fiduciary Rule Transition Period
On Monday, November 27, 2017, the Department of Labor (DOL) announced an 18-month extension of its Fiduciary Rule transition period (Transition Period). The primary purpose of the extension was to give the DOL additional time to consider public comments under criteria set forth in the Presidential Memorandum issued on February 3, 2017.
In light of these developments, here are a few important things to keep in mind:
- The DOL’s Transition Period requirements have not changed.
- Fiduciaries relying on the BIC Exemption must continue to adhere to the Impartial Conduct Standards.
- Fiduciaries relying on PTE 84-24 must adhere to the pre-2016 version of that PTE and must adhere to the Impartial Conduct Standards.
- The DOL has indicated enforcement of the DOL Fiduciary Rule will not be its priority with respect to firms that are making a good faith effort to comply.
- All rollover recommendations and recommendations to move brokerage account assets into fee-based advisory accounts should be made in compliance with the Impartial Conduct Standards and should be well documented by addressing factors considered and reasons for believing the recommendation is in the best interest of the retirement investor.
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