As of today, June 9, 2017, the first phase of the fiduciary rule is in force.
If all goes as planned, the law will be fully implemented by January 1, 2018.
What Parts of the Fiduciary Rule are in Effect?
Advisors must now comply with the expanded definition of fiduciary advice in the Employee Retirement Income Security Act (ERISA) and the Impartial Conduct Standards.
As of June 9, 2017, the fiduciary rule is in force. The law will be in full effect by Jan. 1, 2018.
Under the rule, fiduciary advice now includes investment or management recommendations to plans, plan fiduciaries, participants, and IRA owners.
Per the rule’s Impartial Conduct Standards, advisors must base their investment advice solely on the best interests of their clients, receive no more than reasonable compensation, and avoid using misleading statements.
Is the Fiduciary Rule Here to Stay?
In a Wall Street Journal op-ed, Department of Labor Secretary Alexander Acosta stated the DOL will continue to seek public input on the rule and its potential impact until the start of next year.
It’s possible we could see new rules that alter, overturn, or postpone the full implementation of the current fiduciary rule. But for now, the rule is partially in effect, so make sure you follow it.
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