Los Angeles partner Fred Reish and Washington, D.C. partner Brad Campbell were quoted in a PlanSponsor article titled, “DOL Fiduciary Rule ‘Transition Period’ Will Pose Challenges” after more than 1,000 retirement industry professionals signed up for the 20th edition of Fred and Brad’s “Inside the Beltway” audiocast sponsored by Natixis.
Among other topics, the audiocast provided an update on the fiduciary rule and the transition period exemptions. Brad stated that while it’s possible the DOL could do another implementation delay prior to June 9, it is more likely that the rule will be implemented.
“On that day we will see the fiduciary rule become applicable,” Brad said. “Not one comma has changed within the rule itself, and so everything we have warned about in the years of debate leading up to this point, all the examples of circumstances that would amount to a broker triggering fiduciary advice and fiduciary breaches for the first time, becomes applicable on June 9.”
Though the fiduciary provisions are unaltered, the Trump Administration issued several new temporary, transition exemptions, including a new best-interest contract transition exemption and a transition 84-24 exemption. Fred and Brad noted that these new transition exemptions will ease some of the compliance burden associated with compensation changes related to the fiduciary rule requirements.
Fred also highlighted the remarkable attendance, stating, “it shows just how unclear a lot of this stuff still is, and just how much of a demand for insight there is.”