The Department of Labor (DOL) has adopted, without change, its August 2017 proposal to extend the fiduciary rule transition period by 18 months to July 1, 2019.1 DOL also announced the continuation, during the extended transition period, of the current "working diligently and in good faith to comply" temporary enforcement standard and stated that it will focus "on the affirmative steps that firms have taken to comply with the Impartial Conduct Standards and to reduce the scope and severity of conflicts of interest that could lead to violations of those standards." During the extended transition period, DOL will continue its reexamination of the rule as directed by the President. 2
It remains unclear whether the DOL will ultimately decide to retain or revise (or even repeal) the rule, but some degree of revision appears to be the most likely outcome at this point.
Footnotes
1. See Arnold & Porter Kaye Scholer Advisory, DOL Proposes 18-Month Extension of Fiduciary Rule Transition Period (September 6, 2017).
2. See Arnold & Porter Kaye Scholer Advisory, New Administration Moves Toward Repealing or Revising the Department of Labor's Fiduciary Rule (February 7, 2017).
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