OMB

The Office of Management and Budget has approved a delay in the effective date for the DOL’s fiduciary rule until July 1, 2019.

In a brief notice posted Monday, the OMB, said the extended transition period would apply to the rule’s best-interest contract exemption as well as exemptions for principal trades (the class exemption for principal transactions) and certain insurance sales (prohibited transaction exemption 84-24).

The extension was expected. In recent court filings, the Trump administration had indicated that it would seek the delay.

Nevin Adams, head of communications for the American Retirement Association, who noted the OMB’s action earlier Tuesday in a blog post, said the notice of extension also indicated that changes have been made in the exemptions, but what those changes are is not yet clear.

“What we know is that OMB has concluded its review, and seems somewhat supportive of the [rule] as submitted, but it’s now [going] back to the DOL with some changes,” Adams told Financial Advisor.

It’s also not clear whether the DOL will put the revisions out for comment or is required to seek public input, Adams added.

A DOL spokesman was not immediately available Tuesday.