By: Financial Advisor Tim Hayes - posted in: Employers - Last updated Sep 11, 2019

DOL Fiduciary Rule Timeline & Updates

by | Last updated Sep 11, 2019 | Employers

The 5th Circuit Court of Appeals ruled on March 15, 2018, that the Department of Labor overstepped its bounds in creating the so-called fiduciary rule, parts of which went into effect last year. In general, the rule required that advisors and brokers charge clients the same fee no matter what product they offer them — the so-called conflict of interest provision.

There is talk that the SEC and or FINRA, both of whom regulate advisors and brokers will pick up the ball from the DOL and implement their own retirement advice rule. Some think these organizations because they regulate brokers and advisors are better suited than the DOL who governs retirement plans to apply a new standard.

Previous Timeline 2010 – 2018

  • In 2010, the U.S. Department of Labor (DOL) proposed a change to the definition of who is a fiduciary.
  • Following an uproar by numerous groups, as well as Members of both parties of Congress, the DOL withdrew its first proposal.
  • In February 2015, President Obama announced that the DOL should move forward.
  • On April 14, 2015, the DOL announced a re-proposal of the rule.
  • August 10-13, 2015 public hearings were held
  • In April 2016, U.S. Labor Secretary Thomas Perez announced the final version.
  • The early assessment indicates a phased implementation.
  • Some changes taking effect on April 2017. Others on January 1, 2018.
  • On February 3, 2017, President Trump ordered a review of the Fiduciary Rule putting the implementation of it in doubt. Some financial services companies may decide to go forward with some of the changes required by it anyway.

Read more: The 2015 Fiduciary Proposal: A Retirement Ruckus

These are the opinions of Tim Hayes and not necessarily those of Cambridge Investment Research. They are for informational purposes only, and should not be construed or acted upon as individualized investment advice. 

About Financial Advisor Tim Hayes

Tim Hayes AIF®, CRPS®, AWMA®, CFS®, APMA®

Registered with Cambridge Investment Research, Inc., a broker-dealer with over 3,000 Registered Representatives nationwide. Investment Adviser Representative at Cambridge Investment Research Advisors, Inc., a $94B RIA based in Fairfield, IA. I've held an industry securities registration for 26 years and am subject to SEC and FINRA oversight.

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