Comments are due March 17 on the Department of Labor’s (DOL) proposal to delay implementation of its new definition of who is a “fiduciary.” The proposed 60-day delay would start on the date of publication of a final rule in the Federal Register.
CUNA will submit a comment on the delay.
CUNA supports the goal of the fiduciary rule, which is to protect investors, but questions whether it could impact the ability of credit union members to receive services to invest and save, as well as its potential to add to the unnecessary regulatory burden of credit unions.
CUNA Chief Advocacy Officer Ryan Donovan has said the DOL’s implementation delay and request for additional information will provide opportunities for further analysis about whether there are unintended consequences associated with the new definition that could make it more difficult for credit unions to serve consumers of all means with investment services.
The rule expands the definition of who is a “fiduciary” of an employee benefit plan, adding brokers and advisers providing advice to individual retirement accounts. It was finalized in April 2016.
Last month, Judge Barbara Lynn of the Texas District Court threw out a legal challenge to the DOL’s complete fiduciary rule, which derailed a number of other such challenges to the rule.
The delay plan was published in the Thursday Federal Register.