On August 9, 2017, the U.S. Department of Labor ("DOL") submitted a proposal to the Office of Management and Budget ("OMB") to delay the applicability dates of certain exemptions related to the DOL Fiduciary Rule.
The proposal includes a request to delay the applicability date of the provisions in the Best Interest Contract Exemption, the Principal Transactions Exemption and the Prohibited Transaction Exemption 84-24. Industry professionals and regulators have expressed concerns over various aspects of the rule (see previous coverage). The DOL proposes to delay the transition period and applicability date for the exemptions from January 1, 2018 to July 1, 2019.
SIFMA submitted a comment letter to the DOL reiterating the need to delay the applicability date. SIFMA (i) provided the DOL with data from a study detailing the impact of the rule, (ii) pointed out flaws in the DOL's economic analysis of the rule's likely effects, and (iii) recommended changes to the rule. Additionally, SIFMA criticized the "private right of action" provision, stating that "no private right of action is needed to ensure compliance" with the relevant standards. SIFMA also stated that it does not believe the comprehensive reexamination directed by the President's Memorandum (see previous coverage) can be completed by January 1, 2018.
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