Speculation about delays in the implementation of controversialand long-anticipated Department of Labor fiduciary rules may havesome credit unions wondering whether to ease up on efforts toprepare for new compliance hurdles, but two experts saycredit unions probably shouldn’t take its foot off the gas pedalright now.

The rules generally revolve around redefining which kinds offinancial professionals are subject to fiduciary best intereststandards, as well as when it's OK to provide what the EmployeeBenefits Security Administration calls “conflicted advice” –recommendations from advisors who receive compensation that dependson the actions of the advisee, such as loads, revenue-sharingpayments, finder’s fees or commissions.

Advisors receiving fees or compensation for investment advice orrecommendations to a plan, plan fiduciary, plan participant or IRAowner would be fiduciaries, the Department of Labor noted. Afiduciary can be a broker-dealer, registered investment advisor,insurance agent, pension consultant or other type of advisor, itsaid. The rules are supposed to apply starting April 10.

But credit unions shouldn’t pump the brakes now because of adelay or possible repeal, CUSO Financial Services EVP and ChiefCompliance Officer Peter Vonk said.

“My advice would be for firms to continue with the efforts thatthey have started or have in many cases already brought tofruition, to continue to promote any activity that allows you toengage with clients in their best interest, to disclose such tothem, the further explain potential conflicts and how those aremitigated and to best document your relationship with clients andwhat they can expect of you and what you can expect from them,” heexplained.

Jim Burson, a senior director at Cornerstone Advisors, hadsimilar advice for credit unions.

“If I was sitting at the top of a credit union, I would probablystrategically proceed toward an advisory-based model as opposed toa transaction-based model. What that means is, I may not have toupdate my website and all of those types of things, but I do haveto update how I think about going to market,” he said.

“Then, as needed, deal with my website or those other things.They already have advisory-based disclosures, they already have allof those things in place, it's just their current business mixtends to skew transactional. It's not like they have to do anythingto shift to an advisory model other than to change the mind-set ofhow they want to interact with members and how they want to saythey earn their income to take more of a financial planningapproach,” Burson added.

Financially, some credit unions could take a short-term hit bymoving to an advisory-based model, and Burson is okay withthat.

“The DOL fiduciary rule basically says you have to do what'sright for the member,” he said. “Why is that a bad thing? It's abad thing for a couple of reasons for several credit unions from anincome point of view, but from a strategic point of view, I'm notsure that the delay should really matter one way or the other.”

“If it gets killed, or deferred, or parts of it go away,nothing in that journey to start changing how you think about yourincome and how you earn income from the business is going to goaway,” he said.