September 11, 2017

Another Delay in Fiduciary Rule Implementation (article)

As has been anticipated for some time, the Department of Labor (DOL) is proposing delaying the January 1, 2018 effective date for certain aspects of fiduciary rules.  On August 31, 2017, the DOL’s Employee Benefits Security Administration (EBSA) published proposed regulations which would delay, until July 1, 2019, full implementation of the fiduciary rule’s Best Interest Contract (BIC) exemption, the Principal Transactions Exemption, and certain amendments to a Prohibited Transaction Exemption.  In addition, EBSA issued a Field Assistance Bulletin which sets forth an enforcement policy relating to an arbitration provision in the BIC Exemption and Principal Transaction Exemption.


For background information relating to  the investment advice rules, see the May and December 2016 editions of our At Issue newsletters, and our Benefit Beat implementation coverage this year from the June 13th, April 10th , March 3rd, and February 15th editions.


As is currently the standard, investment advisers must comply with the impartiality standards contained in the fiduciary advice rules that require:

  1. Any advisement rendered by a fiduciary must be in the best interest of the investor,
  2. The fiduciary must take no more than reasonable compensation for such advice, and
  3. The fiduciary must avoid making materially misleading statements. 

Comments on these regulations are due by September 15, 2017.  In the meantime, compliance with the impartiality standards as described above must continue to be maintained.


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.   

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