Delays to key provisions of the fiduciary rule confirmed by Department of Labor

Bovill

The Department of Labor (“DOL”) agreed to further delay key provisions of the fiduciary rule by 18 months. The provisions being delayed include increased transparency around fees and commissions and an exemption through disclosure of potential conflicts of interest through an agreement called a Best Interest Contract Exemption (“BICE”).  The new rules are now slated to go into effect July 1, 2019, along with some amendments to prohibited transaction exemptions.

The DOL stated the extension will provide “time necessary to consider public comments submitted pursuant to the Department’s July Request for Information, and the criteria set forth in the Presidential Memorandum of Feb. 3, 2017, including whether possible changes and alternatives to exemptions would be appropriate in light of the current comment record and potential input from, and action by the Securities and Exchange Commission, state insurance commissioners and other regulators.”

This extension also will provide protection against enforcement policy promising that the DOL will not pursue claims against fiduciaries “working diligently and in good faith to comply with the rule”.

We can help

This year Bovill has expanded its global capabilities by opening an office in United States to further enrich our US regulatory service.

Bovill can provide a comprehensive review of compliance programs to help identify and assess the appropriateness and effectiveness of your firm’s governance systems and management of conflict of interest arrangements, as well as carry out regulatory due diligence work on your behalf to keep up on any changes and the impacts to your business.

If you have any questions about these requirements or need any other support, please contact us at 312-600-9992 or at info@bovill.com.

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