This important update is being sent to keep you informed about the ongoing changes with the Department of Labor (DOL) Fiduciary Rule. Today, August 29, 2017, the Office of Management and Budget (OMB) approved a DOL request for a delay of part of the Fiduciary Rule, a request which was expedited by the OMB. The entire process took the executive office only three weeks to approve the proposal, where, normally a review of agency actions takes the OMB close to 90 days.
The proposed delay would mean an extension of the enactment date of the Best Interest Contract Exemption (BICE) and the stricter requirements of the PTE 84/24 Exemption from January 1, 2018 until the new date of July 1, 2019. It is important to note that the DOL is not rescinding the legal effect of the June 9, 2017 enactment of the Fiduciary Rule. On June 9, 2017, financial services professionals were, under law, required to act in the Best Interest of the Consumer and engage in Impartial Conduct when dealing with retirement accounts.