Fiduciary Rule Takes Effect, But...

The Department of Labor (DOL) Fiduciary Rule, which requires agents marketing retirement plans to put their clients' best interests first, took effect today, but enforcement won't begin until Jan. 1, and maybe not then. The DOL in advance of the June 9 implementation date announced that it  "will not pursue claims against fiduciaries who are working diligently and in good faith to comply with the fiduciary duty rule" until 2018. DOL Secretary Alexander Acosta, however, has indicated that the enforcement date may be pushed back while his department reviews the entire rule under an executive order from President Trump. Meanwhile, the Securities and Exchange Commission (SEC) has issued a request for information (RFI) for public commentary on what defines a fiduciary, in an effort to work with the DOL on a joint standard.