Now that the Department of Labor has confirmed that its fiduciary rule’s compliance date will kick in on June 9, compliance firms and attorneys are busy providing checklists to broker-dealers, advisors and plan sponsors on how to prepare.
“We actually think the current state of affairs makes the most sense” in that the FAQs guidance issued by Labor on May 22 requires a best interest standard “without specifically mandating how firms must comply,” said Cipperman Compliance Services in a Thursday commentary. “The Investment Advisers Act takes that approach, and it has worked pretty well since 1940.”
While compliance measures are in full swing, litigation over the rule continues. The nine groups appealing their case against the fiduciary rule in a Texas court have asked the judge overseeing the case to turn down DOL’s Wednesday request to extend filing their June 2 response brief. The coalition of firms still fighting the rule — which includes the U.S. Chamber of Commerce, the Securities Industry and Financial Markets Association and the Financial Services Institute, has filed in opposition to that request.