DOL Issues 18-Month Delay Related to Prohibited Transaction Exemptions under the Fiduciary Rule
On November 28, 2017, the Employee Benefits Security Administration (EBSA) of the Department of Labor (DOL) issued an 18-month extension transition period and delay of applicability date related to the Prohibited Transaction Exemptions (PTEs) under the Fiduciary Rule. The 18-month extension transition period applies to the Best Interest Contract Exemption and the Class Exemption for Principle Transactions in Certain Assets between Investment Advice Fiduciaries and Employee Plans and IRAs.
The DOL release also delays for 18 months the applicability of certain amendments to Prohibited Transaction Exemption 84-24. The primary purpose of the delay is to give the DOL time to consider the public comments submitted in response to the agency’s Request for Information, published on July 6, 2017. The new transition period ends on July 1, 2019, rather than on January 1, 2018.
Advocacy contact: Dillon Taylor at 202-401-9787.