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Will the DOL Fiduciary Rule Face a Regulatory Freeze?

The ERISA consultants at the Learning Center Resource Desk, which is available through Columbia Threadneedle Investments, regularly receive calls from financial advisors on a broad array of technical topics related to IRAs and qualified retirement plans. A recent call with an advisor in Massachusetts is representative of a common inquiry regarding the Department of Labor’s (DOL’s) investment advice fiduciary rule. The advisor asked:

“I heard there was memorandum issued from the White House that will freeze the DOL’s new investment advice fiduciary rules. Is that true?”


  • It is true that the Assistant to the President and Chief of Staff, Reince Priebus, issued a memorandum on Jan. 20, 2017, regarding managing the federal regulatory process at the outset of the new administration, including the possibility of temporary postponements for new and pending regulations. What is unclear, however, is whether the directive will affect the yet-to-apply fiduciary rules.

  • The memorandum is specific to regulations that have not yet been published in the Federal Register, or have been published, but have not yet gone into effect. Neither condition applies in this case. The investment advice fiduciary rules were published in the Federal Register on April 8, 2016, took effect June 7, 2016, and will become applicable on April 10, 2017. Therefore, a purely technical reading of the memorandum would lead one to conclude that the fiduciary rules would not be subject to a postponement — at least under this guidance.

  • It is possible other guidance from the administration and/or the DOL may be forthcoming that would delay the fiduciary regulations. Stay tuned for further updates.


Conclusion

Time is running short before the DOL’s new investment advice fiduciary regulations become applicable (April 10, 2017). Any directives to effect a delay would have to be issued in the very near future.

The Learning Center Resource Desk is staffed by the Retirement Learning Center, LLC (RLC), a third-party industry consultant that is not affiliated with Columbia Threadneedle. Any information provided is for informational purposes only. It cannot be used for the purposes of avoiding penalties and taxes. Columbia Threadneedle does not provide tax or legal advice. Consumers consult with their tax advisor or attorney regarding their specific situation.
Information and opinions provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Columbia Threadneedle.
Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies.

©2017, Columbia Management Investment Advisers, LLC. Used with permission.

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