Fred Reish Discusses DOL Fiduciary Rule Implementation With Financial Advisor Magazine

According to a Financial Advisor Magazine article, eight trade associations and a law firm sent a letter to the Employee Benefits Security Administration, asking for more time to implement the Department of Labor’s (DOL) fiduciary rule. Benefits and executive compensation partner Fred Reish commented on how the DOL may respond and the impact of the full rule.

The publication explained that, in the letter, the groups asked the DOL to extend the temporary enforcement policy by at least six to 12 months beyond Dec. 20, when the agency’s non-enforcement policy expires and prohibited transaction exemption (PTE) 2020-02 goes into effect.

Reish, who is helping a number of investment advisers, broker-dealers and insurance companies implement the rule, said the DOL could extend the non-enforcement policy without going through the regulatory process. “That is, at least conceptually, the more likely action,” he said.

Further, Reish added, “Some of the exemptions are burdensome, and they even apply when an adviser recommends that an investor roll over one individual retirement account into another.”