DOL Finalizes Delay of Conflict of Interest Rule

On April 7, 2017, the DOL finalized a 60-day delay of the Conflict of Interest Rule applicability date. As we mentioned in recent editions of Compliance Corner, the DOL requested the delay after President Trump instructed the DOL to conduct additional analysis of the rule and its impact on American investors.

The 60-day delay means that the rule will not be effective before June 9, 2017. (The rule was originally set to become applicable on April 9, 2017.) The delay also applies to the prohibited transaction exemptions (PTEs) that are related to the rule. It is presumed that the DOL will now conduct economic and legal analysis of the rule and its impact.

It remains to be seen whether DOL analysis will result in a rescission of the rule or simply a revision. We will continue to follow any developments and provide updates in Compliance Corner.

Final Rule »