Acosta Holds Up June 9th date

May 22nd 2017, the newly appointed Labor Secretary Alexander Acosta confirmed that the DOL fiduciary rule will held to the June 9th applicability date.  Here are some needs to know:

  • There will be no further delays in the rule from the DOL
  •  Two provisions are applicable in particular
    1.  The expansion of who is a fiduciary to anyone advising on ERISA funds including IRAs
    2. The establishment of impartial conduct standards
  •  Final adoption is still slated for Jan 1, 2018 and no claims are expected to be made against fiduciaries that are acting in good faith to comply
Here are a few articles that you can read as of this morning.
As this has been a roller coaster of information to follow over the last 2 years we know that there is a ton of confusion to this issue.  To recap where we are at this point
 – Best interest has never meant “best product” the DOL has been clear on this as well as being clear that hindsight gauging of product selection isn’t a method of measurement to be used in determining best interest
Best interest is to be conducted free from conflict of interest that is the main concern
 – The burden of proof and documentation of best interest will on the advisor in the transition period for both BIC and PTE exemptions
 – Again, you don’t have to have a securities license to sell annuities that are already exempt from securities registration. 
 – You don’t have to align yourself with a Financial Institution during the transition period
 – You DO have to adhere to the impartial conduct standards and keep your documentation otherwise how would you prove that you are acting in good faith to comply
You must be acting under impartial conduct standards as of June 9th BUT please continue to support industry trade groups seeking to keep investor options open.