Erin Sweeney Comments on Muted Impact of DOL ERISA Fiduciary Rule in Financial Advisor

"Legal Brouhaha Over DOL Rule Might Be Muted"
Financial Advisor
04.06.16Erin Sweeney commented on the muted impact of the U.S. Department of Labor's (DOL's) fiduciary rulemaking regarding advice for retirement plans under ERISA, which some observers describe as less weighty than originally anticipated. Sweeney said the most onerous provisions of the regulation will become effective on January 1, 2018, versus the original eight-month compliance timeframe and the DOL eliminated some of the proposal's most contentious disclosure requirements. "Initially, the concern was if it [DOL rule implementation] was given a longer lead time than eight months that any new administration would get rid of it. Rather than worry about the eight months, they took away a lot of the teeth here," Sweeney said. "With this final regulation, the DOL had to take a really close look and decide whether they wanted to take a strong position and take on the market, and I think they blinked on that one. They had to do something because the Obama Administration made this a centerpiece, but all of the big pieces have kind of gone away. And financial institutions will get the time they need to revamp their contracts, and it will really be business as usual."
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