DOL Charts a New Course for ERISA's Fiduciary Rule

April 24, 2017

The U.S. Department of Labor (DOL) published a final rule on April 7, 2017 (Final Extension), delaying for 60 days the applicability date of the new rule defining who is a fiduciary under ERISA (Fiduciary Rule) and related prohibited transaction exemptions (PTEs). As a result, compliance with the Fiduciary Rule and the related PTEs is generally not required until June 9, 2017. A transition period will run from June 9, 2017 to January 1, 2018 (Transition Period) during which the exemptions from the Fiduciary Rule will be available, but only compliance with the Impartial Conduct Standards (described below) condition of those exemptions will be required. Compliance with the remaining conditions of the Best Interest Contract Exemption (BIC Exemption) and with the amendments to Prohibited Transaction Exemption 84-24 (PTE 84-24) – which applies to payment of sales commissions in connection with a plan’s purchase of insurance and annuity contracts – will not be required until January 1, 2018.

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