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Northwest OH Legal Blog

Tuesday, September 12, 2017

U.S. Department of Labor Proposes 18-Month Delay of Fiduciary Rule and Requests Comments

The Department of Labor (DOL) issued a propo​​sed rule​ extending the special transition period for key provisions of the fiduciary rule including the best interest contract exemption. The present transition period is from June 9, 2017, to January 1, 2018. The new transition period would end on July 1, 2019.

The rule expands the “investment advice fiduciary” definition under the Employee Retirement Income Security Act of 1974 (ERISA). These fiduciary standards require advisers to adhere to a best interest standard when making investment recommendations, charge no more than reasonable compensation for their services and refrain from making misleading statements.

The rule proposes to extend the special transition period under:

  • Sections II and IX of the Best Interest Contract Exemption (PTE 2016-01) and
  • Section VII of the Class Exemption for Principal Transactions in Certain Assets Between Investment Advice Fiduciaries and Employee Benefit Plans and IRAs (PTE 2016-02)

The rule proposes to delay the applicability of certain amendments to:

  • 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 primary purpose of the proposed amendments is to give the DOL the time necessary to consider possible changes and alternatives to these exemptions. The DOL is particularly concerned that, without a delay in the applicability dates, regulated parties may incur undue expense to comply with conditions or requirements that it ultimately determines to revise or repeal.     

More information can be found at Field Assistance Bulletin No. 2017-03. Comments are due September 15, 2017.


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With an office located in Toledo , OH Allotta Farley Co., L.P.A. serves clients throughout northwest OH with various legal matters. Areas of service include Allen County, Ashland County, Auglaize County, Crawford County, Defiance County, Erie County, Fulton County, Hancock County, Hardin County, Henry County, Huron County, Lucas County, Marion County, Mercer County, Morrow County, Ottawa County, Paulding County, Putnam County, Richland County, Sandusky County, Seneca County, Van Wert County, Williams County, Wood County, Wyandot County.

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