Yet another potential delay of part of the U.S. Department of Labor's fiduciary rule perpetuates the uncertainty around this year’s long effort, says Blaine Aikin, executive chairman of Fi360.
Firms that have not fully complied with new regulations “have bought themselves some time, but for what?” Aikin asks.
The DOL indicated in a court case filed on Wednesday in Minnesota that an 18-month delay of the rules for exemptions to the fiduciary standard will be sought, which would postpone the implementation of the final parts of the law—set to go into effect in January 2018—until July 2019.
“The good thing is that the first piece of the new standards [that went into effect in June] are going to stick,” says the executive of Fi360, a provider of fiduciary training and tools, as well as the credentialing body for the Accredited Investment Fiduciary and the Accredited Investment Fiduciary Analyst designations.
The new fiduciary standard, which has been debated for years and has already been subject to delays, requires broker-dealers who handle retirement plans to put the best interests of the client above their own interests.
“Expanding the definition of who is a fiduciary was crucial and will be retained,” says Aikin, who also serves as the chairman of the board of directors of the Certified Financial Planner Board of Standards Inc. The Financial Planning Coalition, which includes the CFP Board, is a strong supporter of the fiduciary regulations.
“But the delay of part of the rule means there will be changes,” Aikin adds. “And any changes may mean more years of delay.”