Compliance

DOL Issues RFI About Fiduciary Rule

The request for information asks whether provisions of the rule already in place should be delayed further.

By Rebecca Moore editors@plansponsor.com | June 30, 2017
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The Employee Benefits Security Administration (EBSA) of the Department of Labor (DOL) is publishing a request for information (RFI) in connection with its examination of the final fiduciary rule under the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code (IRC).

The agency’s examination also includes the new and amended administrative class exemptions from the prohibited transaction provisions of ERISA and the IRC that were published in conjunction with the rule. The request for information specifically seeks public input that could form the basis of new exemptions or changes/revisions to the rule and prohibited transaction exemptions (PTEs), as well as input regarding the advisability of extending the January 1, 2018, applicability date of certain provisions in the best interest contract exemption (BICE), the class exemption for principal transactions in certain assets between investment advice fiduciaries and employee benefit plans and individual retirement accounts (IRAs), and PTE 84-24.

The fiduciary rule and PTEs had an original applicability date of this April 10.  However, a February memorandum from President Donald Trump directed the agency to analyze the rule’s likely impact on the access to retirement information and financial advice. In response, EBSA delayed the applicability date of the final rule to June 9 and asked for additional input.

At the PLANSPONSOR National Conference (PSNC), earlier this month, Timothy Hauser, deputy assistant secretary for program operations of EBSA, noted that while the BICE and PTEs went into effect June 9, other provisions of the rule were delayed until January 2018 in order for the agency to complete its analysis. He indicated then that the agency would soon be releasing an RFI to further its analysis.

NEXT: What’s in the RFI?

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