The U.S. Department of Labor may be postponing implementation of some fiduciary rule compliance rules and procedures, but it still expects retirement advisors to provide impartial advice, and to act in the best interests of the consumers.
R. Alexander Acosta, the Labor secretary, testified Wednesday, at a hearing organized by the House Education and the Workforce Committee, that the DOL fiduciary rule is in effect, that the impartial conduct standards, or best interest standards, took effect June 9, and that the DOL’s Employee Benefits Security Administration has the tools it needs to address material, willful violations of the standards.
“We still have enforcement authority,” Acosta said.
(Related: DOL Ready to Enforce Fiduciary Rule: Acosta )
The House Education and the Workforce Committee held the hearing to look at OL policies and priorities. The committee has posted materials related to the hearing, including a link to video recording of the hearing, here.
Acosta told the committee that DOL has already drafted regulations describing how DOL would handle violations of the best-interest standards and is putting the draft through a review at the Office of Management and Budget.
Companies would get an extension that would give them at least 18 months to come into full compliance with the remedy requirements, Acosta said.