Los Angeles partner Fred Reish was quoted in an Employee Benefit News article titled “DOL Won’t Crack Down on Financial Advisers Who Engage in Prohibited Transactions.” The Department of Labor (DOL) recently issued a temporary ban on enforcement of prohibited transaction claims against fiduciaries acting in good faith. Fiduciary advisers must still comply with the Impartial Conduct Standards, though the non-enforcement policy will continue until the SEC or DOL releases its own set of final investment advice rules.
“The DOL also suggested that it is working on a proposed and temporary exemption that will be retroactive to June 9 of last year and that will be prospective - until there is a final exemption,” Fred said. “The delay in the final exemption is because, in all likelihood, the DOL will want to incorporate the provisions of the SEC's proposed Regulation Best Interest.”
Read “DOL Won’t Crack Down on Financial Advisers Who Engage in Prohibited Transactions.” (subscription required)