WASHINGTON (4/6/16 UPDATED noon ET)--The U.S. Department of Labor (DOL) unveiled its final, and controversial, fiduciary rule this morning. The Credit Union National Association (CUNA) is analyzing the rule and will be informing credit unions of the details.
“The Department of Labor’s final fiduciary rule is very complex and we’re evaluating its impact on credit union’s ability to best serve their members,” said CUNA President/CEO Jim Nussle. “CUNA has been active on this issue and raised a number of concerns since the rule was first proposed, and we will continue to work closely with the regulators and lawmakers should we find in our analysis that there are issues in the final rule that negatively affect credit unions.”
Under the rule, a person is a fiduciary if he or she receives compensation for providing advice based on the particular needs of the person being advised or if he or she directs that person to a specific plan sponsor, plan participant, or IRA owner.
Such advice can include, but is not limited to, information provided on what assets to purchase or sell and whether to rollover from an employment-based plan to an IRA. The fiduciary can be a broker, registered investment adviser or other type of adviser some of which are subject to federal securities laws and some of which are not.
CUNA has sent two separate comment letters to the DOL spelling out its concerns with the proposal, the first during the initial comment period, the second after the comment period was re-opened following a four-day public hearing in which speakers raised many of the concerns CUNA has.
CUNA also reached out to the National Credit Union Administration, asking it to weigh in on the potential burdens of the rule, and asked Congress to closely examine the rule, which it did through a House Ways and Means Committee hearing.