The U.S. Office of Management and Budget (“OMB”) recently approved a request by the U.S. Department of Labor (“DoL”) that seeks to postpone implementation of the final portion of the DoL’s controversial fiduciary rule. Originally scheduled to go into effect January 1, 2018, this newest proposal by the DoL would see the fiduciary rule delayed eighteen more months, until July 1, 2019. Click here to view the regulatory review update on the OMB’s website.
Approval by the OMB, while not the final step in implementing a rule delay, is significant. Under administrative procedure, the DoL must now publish a rule formally proposing the delay in the Federal Register and receive public comments. In this case, publication and comment is viewed by many industry watchers as a mere formality. The comment period is not expected to exceed 30 days, with final approval of the delay likely coming in the next several months.
Even if the fiduciary rule is delayed, as now seems more likely, investment adviser firms must still ensure their compliance with aspects of the fiduciary rule, such as the impartial conduct standards, that are already in effect. Under that standard, investment advisers must give prudent advice that is in the customer’s best interest, avoid misleading statements, and receive no more than reasonable compensation.
For our current clients, RIA Compliance Consultants is available for a consultation about what your investment advisor can do to prepare for and the implementation of the DoL fiduciary rule in its current form. Please contact your compliance consultant.
For prospective clients, RIA Compliance Consultant is able to include a consultation about the implementation of the DoL fiduciary rule as part of our annual compliance program service. New clients can click here to schedule an introductory call to learn more about our annual compliance program services.
Posted by RCC
Labels: Conflict of Interest, DOL, Fiduciary
