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DOL delays the Fiduciary Rule applicability date to June 9th

By
November 09, 2017

Member for

1 year 1 month
A063545
Submitted by Marc.Jones on Thu, 11/09/2017 - 10:48

On April 4 the DOL issued a 60-day delay in the Fiduciary Rule applicability date from April 10 to June 9, 2017. Advisors should prepare for the new deadline.

The rule and fiduciary definitions, along with the Impartial Conduct Standards of the Best Interest Contract (BIC) and Principal Transaction Exemptions, will take effect on June 9th. Compliance with the rest of the BIC (including disclosures) is not required until January 1, 2018.

As of June 9, advisors, including those who qualify as "Level Fee Fiduciaries," generally need comply only with the Impartial Conduct Standards. In a nutshell, this means providing non-discretionary investment advice (such as recommending a rollover or a fee-based account) consistent with the ERISA best interest standard, receiving no more than reasonable compensation as the result of the transaction, and not making misleading statements about the recommendation, fees, and material conflicts of interest.

Schwab will continue to monitor this story as it unfolds further with the close of the comment period and the appointment of a new DOL Secretary. Look for perspective from Schwab’s Mike Townsend in the forthcoming edition of RIA Washington Watch (May).