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:

  • Impartial Conduct StandardsThe 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.

How Oyster Can Help

Oyster Consulting has the knowledge and experience to support your efforts to serve your clients in an efficient, effective and profitable manner.  To learn more about our service offerings and the impacts of the DOL Rule, complete our contact form or call us at (804) 965-5400 and one of our Relationship Managers will be happy to help you.