[Photo: SEcretary Alexander Acosta, Department of Labor]

Alexander Acosta, Secretary of Labor, announced in a WSJournal opinion piece that the Labor Department’s Fiduciary Rule will go into partial effect on 6/9/17, with full implementation on 1/1/18. The DOL has concluded that it’s necessary to seek additional public input on the entire Fiduciary Rule, and the Department will do so. 

We have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input. Respect for the rule of law leads us to the conclusion that this date cannot be postponed.

 

Trust in Americans’ ability to decide what is best for them and their families leads us to the conclusion that we should seek public comment on how to revise this rule. Under the Obama administration, the Securities and Exchange Commission declined to move forward in rule-making. Yet the SEC has critical expertise in this area. I hope in this administration the SEC will be a full participant.

Along with Mr. Acosta’s announcement, the DOL issued on Monday new guidance on its web-site for financial advisors, retirement plan sponsors, and individual workers and retirees. 

• The guidance includes Conflicts of Interest FAQs for the transition period, 6/9/17 to 1/1/18.
• A Bulletin addressing Temporary Enforcement Policy on Fiduciary Duty Rule.  

In particular, the Temporary Enforcement Policy notes that, during the phased implementation period ending 1/1/18, the DOL will not pursue claims against fiduciaries who are working diligently and in good faith to comply with the fiduciary duty rule and exemptions, or treat those fiduciaries as being in violation of the fiduciary duty rule and exemptions.