Department of Labor's 2016 Fiduciary Rule: Background and Issues Page: 3 of 28
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Department of Labor's 2016 Fiduciary Rule: Background and Issues
On February 3, 2017, President Trump issued a memorandum on the fiduciary rule that directed
DOL to (1) review the rule to determine whether it adversely affects access to retirement
information and financial advice, and if it finds that it does so then (2) publish a proposed rule to
rescind or revise the rule.
On March 2, 2017, DOL proposed delaying the rule's applicability date by 60 days. On March 10,
2017, DOL issued a Temporary Enforcement Policy indicating it will not initiate enforcement
actions against financial advisers or financial institutions that fail to satisfy the conditions of the
rule or PTEs in the period between the applicability date and when DOL decides to either delay or
not delay the applicability date of the 2016 final rule and PTEs.
On April 7, 2017, DOL issued a 60-day delay of the 2016 final rule's applicability date while it
reviews the effects of the rule pursuant to the presidential memorandum of February 3, 2017.
DOL delayed the applicability date by 60 days from April 10, 2017, to June 9, 2017, of (1) the
expanded definition of investment advice and (2) the Impartial Conduct Standard of the Best
Interest Contract (BIC) exemption. While these two aspects of the rule are currently in place,
other aspects of the exemption, such as requirements to make specific disclosures and warrant
policies and procedures and to execute written contracts are to become applicable on January 1,
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Topoleski, John J. & Shorter, Gary. Department of Labor's 2016 Fiduciary Rule: Background and Issues, report, July 3, 2017; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc1020724/m1/3/: accessed April 19, 2019), University of North Texas Libraries, Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.