Proposed 60-day extension of the applicability date of the Fiduciary rule and PTEs

[RatherBeGolfing]

DOL Proposed Rule: 60-Day Extension of Applicability Date for Definition of Fiduciary (Conflict of Interest) Rule and Related PTEs

[Peter Gulia]

The Labor department PROPOSES to delay the fiduciary rule from April 10 to June 9, 2017.

 

Ending a month’s internal deliberation on what the Labor department might do or propose about an investment-advice fiduciary rule and related prohibited-transaction exemptions, today the Labor department filed [at 8:45] the prepublication text [31 pages] of a proposed delay rule, which is scheduled to be published in tomorrow’s (March 2) Federal Register.

 

The proposed rule – if adopted, published, made effective, and not enjoined – would extend the applicability date of the 2016 investment-advice fiduciary rule from April 10 to June 9, 2017.  It would likewise extend the expiration date of the 1975 investment-advice fiduciary rule.  The proposed rule would extend the availability date of the Best Interest Contract Exemption from April 10 to June 9, 2017.  Likewise, relevant dates for other new and revised exemptions published on April 8, 2016 would change to June 9, 2017.

 

Comments on the proposal to extend expiration, applicability, and availability dates beyond April 10 are due March 17.  (Comments beyond whether to delay are due April 17.)  If the Labor department’s people can read and analyze the many comments in two weeks, it might be feasible to publish the delay rule in early April, slightly before current law’s April 10 “compliance” date.