WASHINGTON—The Department of Labor has filed a notice of plans to delay implementation of three fiduciary rule exemption changes from Jan. 1, 2018, to July 1, 2019.
The extension will apply to one of the most debated proposals, the "best interest contract," as well as "principal transactions" exemptions. NAFCU urged at least a one-year delay in the rule's implementation in a recent official comment letter, the trade association noted.
Consumer groups have been pressing for rules requiring financial advisors to act in a client’s best interests, while financial organizations have been opposing the proposal.
The fiduciary rule became effective this June 9, but the Labor Department has adopted a temporary enforcement policy. Under this policy, the department will not pursue claims against investment advice fiduciaries until Jan. 1 of next year, NAFCU explained.
The department, which has been engaged in a lawsuit challenging the fiduciary rule changes, filed its plan to delay the rule changes in the U.S. District Court for the District of Minnesota. The notice is expected to appear soon in the Federal Register, NAFCU reported.