WASHINGTON—NAFCU has sent a letter to the Labor Department in support a one-year delay in the Jan. 1, 2018, applicability date for provisions relating to the fiduciary rule's contract and transaction exemptions.
The fiduciary rule went into effect June 9, with full implementation scheduled for Jan. 1. NAFCU has previously aired concerns about how the rule’s indirect costs would affect credit unions and has urged the department to revoke the rule or exempt credit unions.
NAFCU has raised particular concerns as well over the rule's provisions affecting certain communications beyond simple marketing statements.
"Part of what distinguishes credit unions as unique financial institutions is a commitment to personalized service – a feature that the fiduciary rule severely compromises by restricting the extent to which credit union employees may offer responsive investment information," NAFCU Regulatory Affairs Counsel Andrew Morris wrote.
Morris pointed out that credit unions, as financial cooperatives directed by volunteer boards, exist for the primary purpose of serving their membership, not for earning fees on investment brokerage.
Under the fiduciary rule, "the potential for litigation risk is measurable and will ultimately lead to a reduction in consumer access to trustworthy investment advice," he said.