Los Angeles partner Bruce Ashton was quoted in two articles discussing the possible delay of the full implementation of the fiduciary rule. Financial Planning’s “Fiduciary Rule May Not Be Fully Implemented Until 2019” highlighted Bruce’s comments as a panelist at a webinar titled “Fiduciary Rule Best Practices.” Bruce stated that he expects that the Department of Labor will extend the transition period past the end of the year.
“The department will most likely look at modifications, which have to go through the regulatory process,” Bruce said. He explained that there will be a 60-day comment period after the Labor Department submits the revised regulation, and that new rules won’t go into effect until after they become final. “I’m guessing it will take around 12 months, and there may be another transition period after that for firms to react and come into compliance,” Bruce said.
He noted that there could be changes to the best interest contract exemption, and that the DOL may also revoke the ability of clients to pursue class action lawsuits against advisers.
Bruce’s comment that rules on adviser compensation may be loosened was also noted in Barron’s article “A DOL Rule Reprieve Until 2019?”