We have all been tracking this issue for months, and today’s release of the final draft of the update to the Department of Labor’s Fiduciary Standard provides some much needed clarity for all of us. While there is still a copious amount of analysis and work to be done to understand the impacts of the final draft language, this is a major step towards the clarity we all need to begin to set strategy. With that in mind, please see the resources deployed below outlining the pertinent details of the final draft. Cavalier Associates will continue to monitor this subject and release further communications as additional analysis becomes available.
Department of Labor Finalizes Rule to Address Conflicts of Interest in Retirement Advice
The Department of Labor and the White House have released a number of resources to communicate the final draft, including:
Fact Sheet: A clear, concise overview of the final draft, including the history of this issue dating back to the enactment of ERISA in 1974
FAQ: This document is broken down into sections to make it easier to investigate specific aspects of the new rules:
• Background and Impact on Retirement Savers
• Rule Requirements
• Impacts on Industry
• Compliance Dates
Change Log: This document outlines the changes made to the rule since the initial draft released in April 2015.
Middle Class Economics: Strengthening Retirement Security by Cracking Down on Conflicts of Interest in Retirement Savings
This release from the White House Office of the Press Secretary also provides a summary of the history and intent of the new rules, along with a concise summary of the timing of implementation of various elements of the rule.