The Labor Department will more than likely propose fundamental changes to the fiduciary rule and its prohibited transaction exemptions, resulting in a delay of full implementation of the controversial regulation for at least one year, and perhaps longer, according to attorneys with Drinker Biddle & Reath.
Proposed revisions to the rule will be subject to public comment and other administrative requirements, as the Labor Department is committed to strictly following the letter of the law to avoid legal challenges, explained attorneys from the firm during a recent webinar.
While both a delay of the January 1, 2018 full implementation date and revisions to the rule would be welcomed by stakeholders that view the existing regulation as onerous, the attorneys cautioned that brokers and advisors to 401(k) plans have key compliance requirements under the existing transition period for the rule, which began June 9.
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