Applicability date for Labor Department 'Conflict of Interest' fiduciary rule
The Department of Labor and the White House have announced the Labor Department's issuance of a "Conflict of Interest" final rule defining who is a “fiduciary” of an employee benefit plan under the Employee Retirement Income Security Act of 1974 (ERISA) as a result of giving investment advice to a plan or its participants or beneficiaries. The final rule also applies to the definition of a “fiduciary” of a plan (including an individual retirement account (IRA)) under the Internal Revenue Code of 1986 (Code). The final rule treats persons who provide investment advice or recommendations for a fee or other compensation with respect to assets of a plan or IRA as fiduciaries in a wider array of advice relationships. The rule will become effective 60 days after publication in the Federal Register, but carries an "applicability date" of April 17, 2017. The Department's Employee Benefits Security Administration has posted a Conflict of Interest Final Rule webpage with key links related to the rule.