Monday, June 12, 2017
Parts of the Department of Labor Fiduciary Rule is finally in effect, but whether the rule with stay or be repealed remains to be seen. Investments News ran a recent article, DOL fiduciary rule takes effect, but more uncertainty lies ahead. The article explains that "[t]wo provisions of the measure, which requires financial advisers to act in the best interests of their clients in retirement accounts, become applicable [June 9th]. One expands the definition of who is a fiduciary, and the other establishes impartial conduct standards." According to the article, the entire rule is scheduled to go into effect January 1, 2018, but that may be delayed since the agency is undertaking regulatory reviews as part of the mandate from the administration. As far as the 2 regs in effect, the article explains that those "will govern adviser interactions with clients in retirement accounts. Under those provisions, advisers must give advice that is in the best interests of their clients, charge reasonable compensation and avoid "misleading statements" about investment transactions and what they're being paid." There is a grace period until July 1, 2018 regarding advice being given to clients, as long as the "fiduciaries who are working diligently and in good faith to comply with the fiduciary duty rule."
The article also mentions that the SEC has asked for comments regarding fiduciary duty.