2016 Small Firm Compliance, DOL Fiduciary Rule Update (Final Rule)
SMALL FIRM COMPLIANCE CORNER
DOL FIDUCIARY RULE UPDATE
DOL Fiduciary Interested Parties:
The Department of Labor issued its final rule on the definition of fiduciary. Backers and opponents of the measure will get a chance to see whether the agency adopted their suggested changes. The department held four days of hearings on the rule and received more than 3,000 comment letters. Labor Department Secretary Thomas Perez said Tuesday that some concessions have been made. Certain aspects of the rule are set to take effect in April 2017 and other requirements in January 2018.
The documents can be found on the public inspection website listed under the Employee Benefit Security Administration: https://www.federalregister.gov/public-inspection
New Definition of Fiduciary: https://s3.amazonaws.com/public-inspection.federalregister.gov/2016-07924.pdf
New Best Interest Contract Exemption: https://s3.amazonaws.com/public-inspection.federalregister.gov/2016-07925.pdf
New Class Exemption for Principal Transaction: https://s3.amazonaws.com/public-spection.federalregister.gov/2016-07926.pdf
Amendments to PTE 84-24:
https://s3.amazonaws.com/public-inspection.federalregister.gov/2016-07928.pdf
Amendments to PTE 75-1, Part V:
https://s3.amazonaws.com/public-inspection.federalregister.gov/2016-07927.pdf
Amendments to 86-128: https://s3.amazonaws.com/public-inspection.federalregister.gov/2016-07929.pdf
Amendments to Class Exemptions 75-1, 77-4, 80-83, 83-1:
https://s3.amazonaws.com/public-inspection.federalregister.gov/2016-07930.pdf
Here are some additional marketing pieces for your review, including a fact sheet, FAQ and a chart:
DOL Fact Sheet: http://www.dol.gov/sites/default/files/documents/featured/protectyoursavings/factsheetcoi.pdf
FAQs issued by DOL: http://www.dol.gov/protectyoursavings/faqs.htm
Chart issued by DOL: http://www.dol.gov/ProtectYourSavings/comparison-chart.htm
I am by no means an expert on this subject, however I have participated throughout the rule-making process in an effort to make a positive difference. Literally thousands of individuals have worked on this rule, but in the end it appears that there were stronger forces at play in Washington, DC and the result of those forces was unveiled today. Please be sure to stay current on this new rule if it affects your clients and/or your business; the regulators typically look to make examples of firms through enforcement actions in the years following implementation of a new rule -- make sure you're not one of them. If I receive any further information that I think may be of assistance to small firms I will be sure to forward it along.
All the best,
Paige
PAIGE W. PIERCE