The American Society of Pension Professionals & Actuaries and the Council of Independent Recordkeepers are asking the Department of Labor to delay the effective date for the proposed fiduciary fee disclosure regulation, rather than extending the transitional rule, as the agency proposes.
In a comment letter to the agency, ASPPA and CLKR say that, given the delay in the finalizing the regulation, there is still uncertainty about what will be required; and that there should be at least a one-year delay in implementing the new fiduciary standard regulation, 408(b)(2), once it is finalized.
“It is crucial” that sufficient time be provided to build the infrastructure necessary to support the new disclosure regime,” the letter says.
The ASPP and CLkR letter, signed by Craig Hoffman, general counsel and director of regulatory affairs for the two groups, explains that a period of time is needed to revise operating systems to reflect the changes mandated by the rule.
Hoffman states in the letter that the members of the two groups have advised the trade groups that engineers are rewriting software code and programs to accommodate the new disclosure requirements. “However, additional time will be required after the regulation is issued because only then will the final system design parameters be known,” Hoffman says in the letter.
“We believe the extension of the transitional rule under the 404(a) regulation is insufficient relief given the delay in finalizing the 408(b)(2) regulation as well as the ongoing review of electronic disclosure standards under the Employee Retirement Income Security Act of 1974 (ERISA),” Hoffman writes.
“We have provided extensive comments to the DOL at every stage of this process,” Hoffman adds. “As we come to the ‘finish line,’ we believe that it is of critical importance that the DOL provide sufficient time to make the necessary system changes to implement the final rules.”