Tax & Benefits Attorney Widely Quoted on the Labor Department’s Proposal to Delay Remaining Fiduciary Rule Provisions
InvestmentNews, Ignites, Law360, Fund Action, Fund Operations, Fund Technology, MutualFundWire.com and The 401kWire.com all reported that on Aug. 9, the Department of Labor (DOL) filed a proposal with the Office of Management and Budget to delay the remaining provisions of the fiduciary rule until July 1, 2019. The articles quote tax & benefits associate Josh Lichtenstein (New York).
Mr. Lichtenstein stated: “The DOL’s filing in the ongoing Thrivent litigation provides a clear indication that it intends to significantly extend the transition period under the fiduciary rule. If this new transition period is on the same terms as the current transition relief then firms will still be subject to the terms of fiduciary rule, including the substantive requirements of the Best Interest Contract Exemption, if applicable, but the documentary, disclosure, and technological requirements under the Best Interest Contract Exemption will not apply. If this proposed delay takes effect then the DOL will have greater freedom to alter the requirements of the Best Interest Contract Exemption or to create new, stream lined exemptions before the new July 1, 2019 effective date. This proposed delay could be seen, in part, as an attempt to avoid having financial institutions make further changes to their practices before the DOL makes final decisions on what the rule and the related exemptions will look like.”