Retirement Advisor Council Requests 266-Day Delay of Regulation Defining “Fiduciary” Under ERISA
- Created: Tuesday, 14 March 2017 09:50
East Granby, CT – Comments the Council submitted today to the U.S. Department of Labor regarding the proposed rule extending the applicability date of the regulation defining who is a “fiduciary” under the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code of 1986, the Council requested a 266-day delay of implementation to the first business day following January 1, 2018, and a 120-day extension to August 8, 2017 of the period to provide additional comments..
In its comments posted HERE, the Council recognizes the challenges the President’s Memorandum to the Secretary of Labor dated February 3 presents for the staff of the Employee Benefits Security Administration, and articulates four motives for the extension request:
- Need for sufficient time for the staff of the Department of Labor to review and take into consideration the comments it will receive as it examines whether the final fiduciary rule may adversely affect the ability of Americans to gain access to retirement information and financial advice, and to prepare an updated economic and legal analysis concerning the likely impact of the final rule
- Need for sufficient time for the industry to articulate a thoughtful response to the Department’s request for comments on the three questions raised in the President’s memorandum
- Need for lead time for plan sponsors, advisory firms, recordkeeping service providers to implement any new regulation
- Labor and energy required to reach, engage, and recontract more than 700,000 qualified retirement plans sponsored by small and micro businesses where the designated plan fiduciary has many responsibilities in addition to managing the retirement plan.
“The industry can’t assume a delay will be granted. Stakeholders are obligated to abide by regulations as they stand now. With the April 10 implementation date looming, recordkeeping service firms and advisory firms must notify plan sponsors of next steps as soon as possible – if it is not already done or in process.” says Executive Director Eric Henon.
The Retirement Advisor Council is a national organization that advocates for successful qualified plan and participant retirement outcomes through the collaborative efforts of experienced, qualified retirement plan advisors, investment managers and defined contribution plan service providers. To advance its mission, the Council undertakes initiatives in the areas of research, public relations and promotion, general public education, regulatory positions and practice management. The Council accomplishes this mission by:
- Identifying duties, responsibilities, and attributes of the Professional Retirement Plan Advisor.
- Sharing professional standards with plan sponsors who are responsible for the success of their plans.
- Providing collective thought capital to decision makers, product providers, legislators and the public.
- Giving voice to the retirement plan advisor community
- Offering tools to evaluate advisors to ensure the quality of services provided.
Learn more about the Retirement Advisor Council at www.retirementadvisor.us