Los Angeles partner Fred Reish was quoted in an InvestmentNews article titled “Longer Wait May Mean End of BIC.”
The Department of Labor (DOL) has proposed an 18-month delay for full implementation of the fiduciary rule, giving the department plenty of time to reconsider the best-interest contract (BIC). Some insiders state that BIC is essential to the rule and doubt that BIC will be eliminated.
Fred noted that the length of the delay may indicate that other agencies will soon establish investment advice standards. Notably, the Securities and Exchange Commission (SEC) has put out a request for comment on fiduciary duty. “It is an indication that DOL wants to collaborate with the SEC, FINRA and the state insurance regulators and come up with a set of rules that are compatible,” Fred said.