As expected, the DoL has issued the 60-day extension to the application of the Fiduciary Rule just in time before the new rule’s April 10th application date. The attached and this link offer a pre-release copy of the extension (to be published in the Federal Register tomorrow). The DoL will now begin the review process stated in the President’s executive memorandum issued on February 3, 2017.
We do not believe that the entire final rule will be repealed; rather we do expect changes to the rule and the prohibitive transaction exemption(s). It will probably be more based on the FINRA suitability approach which heavily relies on disclosures when giving advice regarding rollover. The final rule may take another year to be applicable.
For now, plan sponsors and service providers may rely on the prior (or existing) rule regarding fiduciary conduct and how a fiduciary is defined. This is like the movie, Groundhog Day. We are all waking up to the same events every morning.
To download the pre-release copy of the extension, click here.