Los Angeles partner Fred Reish and Washington, D.C., partner Brad Campbell were quoted in two articles discussing the recent extension of the applicability date of the fiduciary rule. A Financial Planning article, titled, “2 Ways for Advisers to Prepare for Fiduciary Implementation,” discussed the extra grace period and provided some of Fred’s commentary on actionable steps toward compliance.
Fred stated that the rule will largely go into effect in its current form on June 9 and warned of the scope of challenges, particularly for the baby boomer generation. Advisers must decide whether they are going to recommend that retirement plan participants take IRA rollovers after its full implementation.
“If they are going to do that, they have to have a process in place where they can gather the right information, where they can evaluate it and they can provide a recommendation,” Fred said. “Without that, [advisers] will inadvertently be making imprudent recommendations and committing prohibited transactions.”
An Employee Benefit News article, titled, “Why Plan Sponsors Need to Navigate the Exemptions Maze of the New Fiduciary Rule,” highlighted the “transitional set of exemptions.” Brad stated that the DOL threw a curve ball by deciding to go forward with the rule, and instead amend or replace down the road. The amendments allow financial institutions to continue to take in traditional forms of compensation under relatively easy-to-meet exemption requirements through the end of the year.