The Justice Department told a federal court on Tuesday that theOffice of Management and Budget has concluded its review ofthe Labor Department's final rule delaying theimplementation date of its fiduciary rule by 60 days — from April10 to June 9.

Labor announcedTuesday evening its 60-day delay of therule. According to a copy of the final rule set outin DOJ'sletter, Labor's Employee Benefits Security Administration finalrule – to be published in the Federal Register by Friday — extendsthe compliance date of the final regulation, published on April 8,2016, defining who is a “fiduciary” under the Employee RetirementIncome Security Act and the Internal Revenue Code.

Labor, DOJ said, has requested that the rule be made “publiclyavailable” Wednesday morning and published in the Federal Registerno later than April 7.

According to Labor's release announcing the delay, under theterms of the extension, advisors to retirement investors will betreated as fiduciaries and have an obligation to give advice thatadheres to “impartial conduct standards” beginning on June 9 ratherthan on April 10, 2017, as originally scheduled.

“These fiduciary standards require advisors to adhere to a bestinterest standard when making investment recommendations, charge nomore than reasonable compensation for their services and refrainfrom making misleading statements,” DOL stated in the Tuesdayrelease.

The department requested in the final rule delaying thecompliance date comments on the issues raised by President DonaldTrump's Feb. 3 memorandum, and related questions. Labor “urgescommenters to submit data, information and analyses responsive tothe requests, so that it can complete its work pursuant to thememorandum as carefully, thoughtfully and expeditiously aspossible.”

EBSA says the delay is needed so that Labor can conduct a reviewof the rule, as directed by Trump.

The final rule also extends for 60 days the applicability datesof the Best Interest Contract Exemption and the Class Exemption forPrincipal Transactions in Certain Assets Between Investment AdviceFiduciaries and employee benefit plans and IRAs.

EBSA states that the rule requires that fiduciaries relying onthese exemptions for covered transactions adhere only to theImpartial Conduct Standards (including the “best interest”standard), as conditions of the exemptions during the transitionperiod from June 9, 2017, through January 1, 2018.

The fiduciary definition in the rule published on April 8, 2016,and Impartial Conduct Standards in these exemptions, are applicableon June 9, 2017, while compliance with the remaining conditions inthese exemptions, such as requirements to make specific writtendisclosures and representations of fiduciary compliance incommunications with investors, is not required until January 1,2018, EBSA says.

The applicability of amendments to Prohibited TransactionExemption 84-24 are also delayed until January 1, 2018, other thanthe Impartial Conduct Standards, which will become applicable onJune 9, 2017.

Also extended for 60 days is the applicability dates ofamendments to other previously granted exemptions.