The Office of Management and Budget (OMB) released on Wednesday, August 30, a proposed rule from the Department of Labor (DOL) to provide an 18-month delay, from January 1, 2018 to July 1, 2019, in the full implementation of the DOL’s Fiduciary Rule.

The DOL notes that the delay is needed in order to do the following:

  • Complete their review of the Fiduciary Rule as required by the Presidential Memorandum dated February 3, 2017
  • Release a “new and more streamlined class exemption built in large part on recent innovations in the financial services industry”
  • Coordinate with the Securities and Exchange Commission in development of future standards of conduct, as well as “avoid obligating financial services providers to incur costs to comply with conditions, which may be revised, repealed or replaced.”

It should be noted that the Proposed Rule does not change the fact that following June 9, 2017, insurance agents are now and will remain fiduciaries for any annuities or other insurance products sold with respect to qualified funds. This means those agents seeking to earn commissions from the sale of such products are required to adhere to the modified version of PTE 84-24 (including, adhering to impartial conduct standards, earning no more than reasonable compensation, and making appropriate disclosures).

The Proposed Rule is expected to be published by the OMB on Thursday, August 31. A 15-day comment period will follow. The DOL is expected to solicit comments as to whether a “set time,” such as an 18-month delay is preferred or a tiered approach in which certain aspects become effective in differing intervals.

AmeriLife will provide more information about the DOL’s Fiduciary Rule delay as details become available.



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