Applicability Date of Fiduciary Advice Rules Extended (article)
As follow-up to last month’s Benefit Beat article, Fiduciary Advice Rules Under Review, the Department of Labor’s Employee Benefit Security Administration (EBSA) released a proposal to extend the applicability date of its fiduciary advice rules. These rules were to become applicable on April 10, 2017; however, President Trump called for an updated economic and legal analysis concerning the likely impact of these rules. On March 2, 2017, EBSA published proposed rules that would provide a 60-day extension of the applicability date of the fiduciary rules to June 9, 2017.
EBSA is inviting public comments on market responses of fiduciary rules on a broad range of issues including:
- Anticipated changes in consumer demand for investment advice and investment products, pricing of investment products, and types and pricing of advisory services;
- Whether implementing the current rules would lead investors to shift investments between asset classes or types, or lead to an increase or reduction in commissions, loads, or compensation arrangements for advisory services surrounding the sale of insurance products; and
- Whether the rules would generate innovations or changes in the delivery of financial advice or investor education, both in terms of access and content.
Comments on the proposal to extend the applicability date for 60 days must be submitted to EBSA by March 17, 2017. The deadline for submitting comments regarding the updated economic and legal analysis described in the President’s Memorandum is April 16, 2017.
The information contained in this article is provided as general guidance and may be affected by changes in law or regulation. This article is not intended to replace or substitute for accounting or other professional advice. Please consult a CBIZ professional. This information is provided as-is with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.