The Department of Labor (DOL) announced Monday its fiduciary rule will be delayed 18 months, making its effective date July 1, 2019. CUNA strongly supported this delay, noting in communications with DOL that at least a 180-day delay would be necessary for credit unions to come into compliance.
The rule would expand who is considered a “fiduciary” of an employee benefit plan. CUNA expressed several concerns about compliance challenges with the rule, and supports additional research efforts into whether the rule may limit choices for moderate and low-income borrowers.
According to the DOL, the delay gives it time to review comments received on the fiduciary rule, including “whether possible changes and alternatives to exemptions would be appropriate in light of the current comment record and potential input from, and action by the Securities and Exchange Commission, state insurance commissioners and other regulators.”
President Donald Trump has directed DOL to prepare an updated analysis of the likely impact of the rule on access to retirement information and financial advice.