We previously reported that due to a Presidential Memorandum issued on 2/3/17, the Dept. of Labor has granted a 60 day extension to the application of the fiduciary rule and exemptions known as BICE (Best Interest Contract Exemption). The Fiduciary Rule was to go into effect 4/10/2017 but will now go into effect on 6/9/17.
As of June 21, 2018, the U.S. 5th Circuit Court of Appeals officially vacated the rule. Financial advisors and investment firms have, however, made changes to comply with the Fiduciary Rule. Many of those changes will remain in place.
Under the Fiduciary Rule, financial advisors to retirement plan participants would have become fiduciaries. Fiduciaries must act solely for the benefit of plan participants and their beneficiaries. Fiduciaries must act with the care, prudence and diligence of a prudent person. For more information about fiduciary responsibilities, visit https://www.irs.gov/Retirement-Plans/Retirement-Plan-Fiduciary-Responsibilities