DOL Announces Extension of Transition Period for Fiduciary Rule Exemptions

November 29, 2017

In order to allow time to consider public comments submitted pursuant to its Request for Information in July 2017, the Department of Labor (DOL) has extended the special Transition Period for the Best Interest Contract Exemption and the Principal Transactions Exemption, and of the applicability of certain amendments to Prohibited Transaction Exemption 84-24 until July 1, 2019.

The DOL notes that during the extended Transition Period, fiduciary advisers have an obligation to give advice that adheres to “impartial conduct standards.” These fiduciary standards require advisers to adhere to a best interest standard when making investment recommendations, charge no more than reasonable compensation for their services, and refrain from making misleading statements.

The DOL also announced an extension of the temporary enforcement policy to cover the 18-month extension period so that now, through July 1, 2019, the Department will not pursue claims against fiduciaries working diligently and in good faith to comply with the Fiduciary Rule, or treat those fiduciaries as being in violation of the Fiduciary Rule.


Investment Advisers