WASHINGTON—The Department of Labor has published its proposed rule to delay implementation of three fiduciary rule exemption changes from Jan. 1, 2018, to July 1, 2019.
The extension will apply to the rule's "best interest contract" and "principal transactions" exemptions, NAFCU explained.
“Although the fiduciary rule technically went into effect in June 2017, the Labor Department adopted a temporary enforcement policy so it will not pursue claims against investment advice fiduciaries who are ‘working diligently and in good faith to comply with the fiduciary duty rule and exemptions’ until Jan. 1, NAFCU stated.
In July, NAFCU submitted an official comment letter to the Labor Department supporting a one-year delay in the rule's applicability date for provisions relating to the fiduciary rule's contract and transaction exemptions. NAFCU has also previously aired concerns about how the rule’s indirect costs would affect credit unions, and has urged the department to revoke the rule completely or, at the very least, exempt credit unions.
NAFCU said it supports the Labor Department's reasoning for the delay — "that, without delay in the applicability dates, regulated parties may incur undue expense to comply with conditions or requirements that [the Department] ultimately determines to revise or repeal" — and will continue to advocate for relief from this rule.
For additional information on the policy, NAFCU recommended reviewing the Employee Benefits Security Administration's field assistance bulletin.