Fiduciary rule delayed until July 1, 2019: DOL
August 10, 2017 by Editorial Staff
Apparently responding to requests from financial industry lobbies like the Investment Company Institute for further delays in the enforcement of the Obama-era “fiduciary rule,” the Department of Labor filed this statement in Minnesota federal court Wednesday:
“On August 9, 2017, the Department submitted to the Office of Management and Budget (“OMB”) proposed amendments to three exemptions, entitled: Extension of Transition Period and Delay of Applicability Dates From January 1, 2018, to July 1, 2019; Best Interest Contract Exemption (PTE 2016-01); Class Exemption for Principal Transactions in Certain Assets Between Investment Advice Fiduciaries and Employee Benefit Plans and IRAs (PTE 2016-02); Prohibited Transaction Exemption 84-24 for Certain Transactions Involving Insurance Agents and Brokers, Pension Consultants, Insurance Companies, and Investment Company Principal Underwriters (PTE 84-24).”
The delay will allow brokers to sell variable and indexed annuities under the PTE 84-24 exemption for at least about two more years, rather than under the more stringent Best Interest Contract Exemption, which gave investors the right to participate in class-action suits against financial services companies in cases of systematic abuse of the rule.
Click HERE to read the full story via RIJ; subscription required.