The Department of Labor (DOL) recently confirmed that, barring any action by the courts or Congress, the effective date of the DOL’s fiduciary rule will not be delayed further. The rule will take effect in part on June 9, 2017 with the full implementation of the rule taking effect on January 1, 2018.
Originally, the rule was scheduled to take effect April 10, 2017. However, the Trump administration issued a memo asking the DOL to delay the implementation pending a more thorough review and the DOL later determined that the effective date should be delayed until June 9th.
Why is this rule of such importance? This is because it changes the rules on who is considered a fiduciary when giving investment related advice. Individuals who were not considered a fiduciary under the old rules may be considered a fiduciary under the new DOL rule. Fiduciary status under the plan creates increased responsibility for the individual in regards to the plan and its participants.
If you have any questions regarding the above information or the fiduciary rule in general, please contact your Nyhart consultant.