FSI
  • DOL

    CURRENT STATUS: The rule has been delayed 60 days to June 9. According to the details of the delay, the fiduciary definition and the Impartial Conduct Standards will go into effect on June 9, 2017. Other requirements, such as the Best Interest Contract and transition disclosures, among others, will be delayed until January 1, 2018, unless they are repealed or revised before then.

    The new administration has expressed concerns about the DOL fiduciary rule, raising questions about whether the rule will go into effect. The following are important events that have taken place so far:

    • February 3, 2017: President Trump issued an executive order that directs the Secretary of Labor to prepare an updated economic and legal analysis of the DOL Fiduciary Rule.
    • February 8: Chief Judge Barbara Lynn ruled to uphold the DOL fiduciary rule in the lawsuit brought by a coalition of financial services trade associations, including FSI and the U.S. Chamber of Commerce.
    • March 1: DOL released a proposal delaying the applicability date to June 9, 2017 in order to collect information related to the issues raised in President Trump’s executive order. FSI submitted a comment letter supporting the delay and asking for even more time to comply. FSI will also be submitting a comment letter advocating for the repeal of the rule.
    • March 10: DOL issued a Field Assistance Bulletin outlining a new temporary enforcement policy of the fiduciary rule. The bulletin states that the DOL will not initiate enforcement action if an adviser or financial institution fails to meet the conditions of the fiduciary rule by the April 10 deadline provided certain conditions are met. The bulletin is intended to provide firms greater clarity as the DOL contemplates delaying the rule.
    • March 10: The coalition filed a motion for a temporary injunction pending appeal. Chief Judge Lynn subsequently ordered the Department of Justice (DOJ) to file a motion in response and filed an order inviting the coalition to file a supplemental brief describing why an injunction is necessary in light of DOL’s temporary enforcement bulletin.
    • March 20: Chief Judge Barbara Lynn denied the coalition’s motion for a temporary injunction.
    • April 4: DOL delays applicability of fiduciary rule by 60 days to June 9.