WASHINGTON—The Department of Labor will have a 15-day comment period regarding extending the Jan. 1 applicability date of certain aspects of its fiduciary rule and a 30-day comment period on other, related issues, according to a request for information scheduled to publish in the Federal Register Thursday.
The rule went into effect June 9, with full implementation scheduled for Jan. 1. NAFCU noted that it will be submitting comments.
In its request for information, the Labor Department is encouraging responses to questions such as: How a delay in the Jan. 1 compliance date would reduce burdens on financial services providers and benefit retirement investors?, and what those regulated entities have done to date to comply with this rule? It it also seeking feedback regarding streamlining the rule and disclosure requirements, noted NAFCU.
NAFCU reminded that it has previously aired concerns about how the rule’s indirect costs would affect credit unions. It has urged the department to revoke the rule or exempt credit unions.
In related news, the Labor Department this week asked the U.S. Court of Appeals for the Fifth Circuit to generally uphold the fiduciary rule. Other challenges to the rule by business groups were lost last year when judges in Texas and in Washington refused to bar implementation, NAFCU reported.
The Fifth Circuit has scheduled a July 31 argument date to hear the challenge to the rule, NAFCU added.