Los Angeles partner Fred Reish was quoted in a ThinkAdvisor article titled “DOL Files Official Delay of Fiduciary Rule.” The DOL has filed a rule with the Office of Management and Budget (OMB) for an official 18-month delay of the fiduciary rule.
The new rule is titled “18-Month Extension of Transition Period and Delay of Applicability Dates; Best Interest Contract Exemption; Class Exemption for Principal Transactions; PTE 84-24” and would extend the applicability date of the BIC, 84-24 and Principal Transactions exemptions to July 1, 2019. As Fred noted, “[t]hat also means that the transition versions of the exemptions will apply until June 30, 2019. For example, the transition BIC exemption requires that advisors and their financial institutions comply with the Impartial Conduct Standards: the best interest of care, no more than reasonable compensation and no material misleading statements.”
He also stated that he expects the OMB to move quickly to approve the rule and that the text will not be available for viewing until the OMB approves it.