The Department of Labor on Wednesday released a proposed rule to extend for 60 days the applicability date of its fiduciary rule under the Employee Retirement Income Security Act.
The proposal, which includes a 15-day comment period, would extend the rule’s April 10 compliance date to June 9.
Labor said that it invites comments on the proposal to extend the applicability date of the final rule as well as the prohibited transaction exemptions and the Best Interest Contract Exemption.
Fred Reish, partner in Drinker Biddle & Reath’s employee benefits and executive compensation practice group in Los Angeles, notes that a 6-month delay had been widely expected.
“During the shortened period, the DOL will take comments for 15 days on whether the proposed rule should be finalized and will take comments for 45 days on a list of questions about the impact of the fiduciary regulation and the exemptions,” Reish explains.