We would like to update the ERISA LAW ALERT sent earlier today. In the Alert, which was based on a draft version of the Executive Memorandum, we stated that the DOL Fiduciary Rule would be delayed for 180 days. The final version of the Executive Memorandum, like the draft, directs the DOL to review the Fiduciary Rule, but unlike the draft, does not specify the time period for review or the length, if any, of the delay. In other words, the 180-day delay period was specifically removed. We understand that interested trade groups are working to obtain clarification from the White House as to what this means.
As it stands, the final version of the Executive Memorandum does not, in and of itself, repeal, revise or delay the Fiduciary Rule. The DOL will have to determine whether and how a delay may or should be implemented. This leaves financial services firms in the difficult situation, for the moment, of not knowing with 100% certainty if there will be an extended applicability date or not.
We are seeking further clarification and will update you as soon as we are able to determine the status and intent of the Executive Memorandum. Thank you for your patience.