The Department of Labor announced Monday its fiduciary rule will be delayed 18 months, making its effective date July 1, 2019. CUNA strongly supported this delay, noting that at least a 180-day delay would be necessary for compliance.
The U.S. District Court of The Eastern District of Texas ruled against the Department of Labor’s overtime rule Thursday, a rule that CUNA is concerned might add to regulatory burdens facing credit unions.
The DOL published its 60-day delay of its fiduciary rule in the Federal Register Friday, extending the effective date to June 9. The rule expands the definition of who is a “fiduciary” of an employee benefit plan.
The DOL should delay its fiduciary rule by at least 180 days, CUNA wrote Thursday, also calling for additional efforts and research to ensure that credit union members are not harmed by broad regulations.
The Department of Labor’s overtime rule adds to credit union regulatory burden, and has unintended consequences for members, CUNA wrote to several legislators Thursday. CUNA wrote to support the Overtime Reform and Enhancement Act.
CUNA will conduct a free member webinar Monday on the Department of Labor’s new overtime rule, and what it could mean for credit unions. The webinar is free and will run from 2 to 3:15 p.m. (ET) July 18.
The Department of Labor’s overtime rule would create regulatory burdens for credit unions and negative consequences for members, CUNA told the House Committee on Education and the Workforce Thursday, when the committee conducted a hearing on the rule.
The U.S. Department of Labor’s fiduciary rule is being challenged by a lawsuit filed in Texas Thursday by the U.S. Chamber of Commerce and other financial advice industry groups, according to reports. The rule was finalized in April.
Further CUNA analysis of the U.S. Department of Labor’s overtime rule found minor relief, but CUNA remains concerned about the increased burden on credit unions. Several CUNA-suggested changes were included in the final rule.
The U.S. Department of Labor’s proposed overtime rule would disproportionately impact credit unions in rural and underserved areas and could force credit unions to limit services, CUNA said in a letter sent Wednesday.