DOL Rule Takes Effect at Last

DOL Rule Takes Effect at Last

It may have taken years and a final, 60-day delay implemented by Executive Order, but the Department of Labor Fiduciary Rule finally took effect on June 9th

The new regulation expands the definition of fiduciary and established standards of impartiality that will make sure advisors put client interests first.

The Rule isn’t entirely out of the woods, as further review could be requested ahead. Enforcement is also in question, and the DOL has stated that it will not purse claims against fiduciaries attempting in good faith to comply with the rule during the phased implementation period.

Industry professionals seem to be getting on board with the rule. Joe Duran, CEO of United Capital, a registered investment advisor, believes that momentum was behind the implementation and people who don’t comply with the standards are going to be the “bad eggs of the industry.”  However, he also believes that enforcement will come later than anticipated.

Blaine Aiken, executive chairman at Fi360, a provide of fiduciary training and tools, thinks it unlikely that the DOL will repeal the rule, let alone propose any major changes. The DOL built a strong foundation for the regulation that can’t be easily walked back, and most firms have already expended significant resources to comply.

Steve Leivent, senior vice president of advisory client experience for SS&C Advent, says that the best advisors already act as fiduciaries for their clients. For these advisors, the services they’re already providing should “translate into more clients with minimal changes to their current processes.”

For more information, please read:
DOL Fiduciary Rule Finally Takes Effect | Wealth Management

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