DOL Seeks to Delay Fiduciary Rule by 18 Months
The Department of Labor filed a notice today, August 9, 2017, that it intends to extend the applicability date for the second phase of the fiduciary rule by 18 months. The rule took partial effect on June 9, expanding fiduciary duties to advisors and agents and implementing the Impartial Conduct Standards.
In a filing in the Thrivent Financial for Lutherans case in the Minnesota federal district court, the DOL notified the Court that it had submitted to the Office of Management and Budget (OMB) a proposed extension of the transition period and delay of the applicability dates from January 1, 2018 to July 1, 2019 for the Best Interest Contract (BIC) Exemption and Prohibited Transaction Exemption (PTE) 84-24. (The extension would also apply to PTE 2016-02, which is a class exemption for principal transactions in certain asset classes.)
The effect of this development means that fixed indexed annuities will continue to be allowed to be sold under PTE 84-24 for at least this extended transition period, rather than being placed under the wholly unworkable Best Interest Contract Exemption on January 1, 2018. Notice of the DOL™ submission to the OMB will become publicly available tomorrow morning, August 10, triggering interagency review in preparation for publication in the Federal Register.
Previously, on July 21, 2017, NAFA submitted a comment letter to the DOL urging a further delay of the January 1, 2018 applicability date so that the Department could continue and complete a thorough review of the rule as directed by the President in his February 3 White House Memorandum.
In the meantime, we will continue to keep you apprised of any new developments related to the rule and our fight to protect the future of fixed annuities.
NAFA Executive Director
(414) 332-9306 x 1
NAFA, the National Association for Fixed Annuities, is the premier trade association exclusively dedicated to fixed annuities. Our mission is to promote the awareness and understanding of fixed annuities. We educate annuity salespeople, regulators, legislators, journalists, and industry personnel about the value of fixed annuities and their benefits to consumers. NAFAs membership represents every aspect of the fixed annuity marketplace covering 85% of fixed annuities sold by independent agents, advisors and brokers. NAFA was founded in 1998. For more information, visit www.nafa.com.