The fiduciary rule remains on hold for now. On Wednesday, the U.S. Department of Labor (DOL) announced revised fiduciary guidelines for retirement advisors do not have to be implemented until Friday, June 9. In the meantime, the DOL will be reviewing the regulations, developed in the final years of former President Barack Obama’s term.
The DOL had set next Monday, April 10 as the deadline to begin implementing the fiduciary rule on a transitional basis, with January 1, 2018 the deadline for all advisor-related compliance to begin. As a practical matter, though, many advisors have already started to implement new compliance procedures in preparation for the new fiduciary rule taking effect, and the DOL has not changed the January 1, 2018 final deadline date.
The so-called “fiduciary rule” refers to DOL regulation changes aiming to protect investors, including participants in employer-sponsored 401(k) plans, by reducing conflicts of interest between financial advisors and fund providers. Most of all, the DOL regulations widen the scope of what is considered fiduciary advice, thereby creating more fiduciaries.
However, the fiduciary rule has been in flux since President Donald Trump ordered a review of the guidelines in February, and the Department of Labor will make a decision on whether to change the rule by year’s end.
As more news develops, Plexus Financial Services will keep you posted. As a 3(21) investment co-fiduciary, we put our clients first. For more information about the fiduciary rule and the implementation date change, please contact a Plexus Financial Services client service team member at 847-307-6222.
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