Careers

Experiences

Industries

Offices

Our Firm

Pages

Our People

Updates

Practices

Warner Norcross + Judd LLP is a corporate law firm with over 230 attorneys serving clients in nine offices throughout Michigan. Among the largest law firms in Michigan, Warner works in virtually all areas of business law.

Michigan Law Firm - Warner Norcross + Judd LLP

The Department of Labor (DOL) intends to delay, and so has issued a proposed rule to amend, the first applicability date of its fiduciary rule and corresponding prohibited transaction exemptions, including the Best Interest Contract Exemption, from April 10, 2017, to June 9, 2017. The proposed 60-day delay is subject to the DOL’s completing its rulemaking process. Practically speaking, the DOL’s adoption of this 60-day delay seems virtually certain and should be completed before the all-important April 10, 2017, implementation date.

contentpilot/introduction

The DOL’s rulemaking process includes two comment periods: (1) a 15-day comment period on the proposed 60-day delay of the applicability date; and (2) a concurrent 45-day comment period addressing the economic and legal analysis mandated by President Trump’s February&nbsp;3, 2017, Memorandum directing the DOL to consider whether the fiduciary rule is likely to: (a) reduce retirement investors’ access to retirement savings offerings, product structures, information or related financial advice; (b) adversely affect investors and retirees by disrupting the retirement services industry; or (c) cause an increase in litigation and prices paid by investors and retirees.

core/paragraph

If the DOL makes an affirmative determination with respect to any of these considerations or concludes that the fiduciary rule is inconsistent with the Trump Administration’s priorities to “empower Americans to make their own financial decisions, to facilitate their ability to save for retirement and build the individual wealth necessary to afford typical lifetime expenses, such as buying a home and paying for college and to withstand unexpected financial emergencies,” the DOL is further directed to either rescind or revise its rule and/or related exemptions.

The 15-day comment period on the applicability date delay runs until Friday, March&nbsp;17, 2017. The 45-day comment period on the economic and legal analysis ends on Sunday, April&nbsp;16, 2017. Public comments may be submitted by email to <a href="mailto:EBSA.FiduciaryRuleExamination@dol.gov?subject=RIN%201210-AB79">EBSA.FiduciaryRuleExamination@dol.gov</a> with “RIN 1210-AB79” referenced in the subject line of the message.

The 60-day delay will: provide short-term relief for financial institutions and their advisers from the first applicability date; allow 45 days for further public comment about the impacts of the rule; and give the DOL time to complete its reexamination of the rule, further extend the rule’s implementation dates as necessary, and either rescind or revise the fiduciary rule and/or its prohibited transaction exemptions. Material revisions to the rule would typically require further DOL rulemaking, including a new period for further public comments on the proposed amendments. In the meantime, the DOL’s historical interpretations of affected ERISA and related Internal Revenue Code provisions are expected to continue in effect.

When the proposed date extension has been formally adopted later this month, we will send another alert. Further developments are anticipated to follow in late April or May. In the meantime, if you have any questions, please contact Lisa Zimmer at <a href="mailto:lzimmer@wnj.com">lzimmer@wnj.com</a> or 248.784.5191 or Shane Hansen at <a href="mailto:shansen@wnj.com">shansen@wnj.com</a> or 616.752.2145.

Financial Institutions

Funds and Investments

Of Counsel

Shane B. Hansen

Partner

Lisa B. Zimmer

Employee Benefits

DOL Proposes 60-Day Delay in Fiduciary Rule

Warner Norcross + Judd LLP is responsible for the contents of our advertising and this website. Please read our full <a href="/privacy-policy/" aria-label="see privacy policy">privacy policy</a> available on our website. If you have any questions or comments about our website or our Privacy Policy please contact us at <a href="mailto:info@wnj.com">info@wnj.com</a> or 616.752.2000. 

DOL Proposes 60-Day Delay in Fiduciary Rule

professionals