The Department of Labor's "fiduciary duty" Rule
continues to get more bollixed up. DOL announced a temporary
enforcement policy that will give a "free pass" for any
violations (a) in the gap between effective date and delay, or (b)
tardy good-faith compliance if there's no delay.
The Rule becomes effective on April 10, requiring among others a
fiduciary acknowledgement (even though full BIC contract compliance
won't be required until January 1, 2018). DOL published a
proposed delay for 15-day comment on March 2, with a broader
"merits" comment period extending thereafter. If
adopted, the Rule will delay implementation for at least 60
Although the Bulletin provides some scant regulatory-enforcement
comfort, it does not alleviate any risk arising from the central
private-civil-action enforcement tenet of the Rule.
As we noted in prior posts on the subject, litigation to
invalidate the Rule is working its way through the appellate
courts, while legislation to revoke it is percolating through
Congress. And it's possible that a new "delay
rule" will meet with court challenges from the other side of
In a massive understatement, the Bulletin cites "concern
about investor confusion and other marketplace disruption based on
uncertainty." Indeed, the Bulletin notes that some firms
are contemplating investor communications that are
conditional: "We are your fiduciary, but only if the
Rule becomes applicable."
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The effects of the California Supreme Court's latest interpretation to provide seating to workers are beginning to show, as the United States District Court for the Central District of California recently approved a $700,000 settlement ...
Given the issues workplace texting presents for employers, employers would be wise to make clear in their policies what method of communication employees may use in the workplace for business purposes.
With an estimated U.S. divorce rate in the 40% to 50% range, your retirement plan is likely to receive an order from a court directing the plan to split a participant's benefits, also known as a domestic relations order.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).