The Tenth Circuit recently affirmed the Department of Labor’s authority to impose new conditions for exemption from prohibited transaction rules with respect to the sale of annuity contracts. The case related to the Department’s decision, as part of the 2016 “fiduciary rule,” to make sales of fixed indexed annuities ineligible for Prohibited Transaction Exemption 84-24,
BIC Exemption
Department of Labor Finalizes 18-Month Delay of Fiduciary Rule Exemptions
By Russell Hirschhorn, Ruthanne Minoru & Seth Safra on
On November 27, 2017, the Department of Labor (“DOL”) finalized the delay of the applicability date for certain conditions for exemptions to the fiduciary rule until July 1, 2019. This delay was initially proposed in late August as described here.
Although certain requirements have been delayed, the fiduciary rule’s broad definition of “fiduciary” and…
Department of Labor Officially Proposes Delaying Fiduciary Rule’s Exemptions for 18 Months
By James Huffman, Russell Hirschhorn & Seth Safra on
On August 30, 2017, the Department of Labor (“DOL”) officially proposed delaying the applicability date of exemptions to its fiduciary rule until July 1, 2019. The proposal was expected after DOL stated in a court filing earlier this month that a delay proposal was under review by the Office of Management and Budget.
This proposal…
Department of Labor Requests Additional 18-Month Delay of Certain Fiduciary Rule Requirements
By James Huffman, Russell Hirschhorn & Seth Safra on
On August 9, 2017, the Department of Labor (“DOL”) stated in a court filing that the Office of Management and Budget (“OMB”) is reviewing a proposal to extend the applicability date for certain requirements under DOL’s fiduciary rule until July 1, 2019. As discussed here and here the fiduciary rule’s “impartial conduct standards” have been in effect since June 9, 2017; but other requirements, including the written contract required under the Best Interest Contract exemption and certain disclosure requirements, have been delayed pending DOL’s review of the rule. DOL’s request suggests that DOL will need significantly more time to complete its review of the rule.
DOL Again Seeks Comments on New Fiduciary Rules and Exemptions
By Benjamin Saper, Russell Hirschhorn & Seth Safra on
On June 29, 2017, the Department of Labor (“DOL”) requested another round of public comment on its fiduciary rule—this time in the form of a Request (“RFI”) for Information. The RFI seeks input on (a) whether to extend the January 1, 2018, applicability date for parts of the rule that are not yet in effect,…
Department of Labor’s New Fiduciary Rule Will Go Into Effect June 9th
By Benjamin Saper, Russell Hirschhorn & Seth Safra on
The Department of Labor has announced that the new fiduciary conflict of interest rule and related exemptions will begin taking effect on June 9, 2017, ending speculation of further delay. At the same time, the Department announced a relaxed enforcement standard for the rest of 2017. See our blog post on the delayed effective date…
DOL Fiduciary Rule Delayed, But At Least Parts Might Be Here to Stay
By Russell Hirschhorn & Seth Safra on
On April 4, 2017, the U.S. Department of Labor issued a final rule postponing applicability of the conflict of interest rule and related exemptions for sixty days, until June 9, 2017. The stated purpose of the extension is to allow more time to: (i) complete the examination required by President Trump’s February 3, 2017 memorandum,…
IRS Issues Temporary Enforcement Policy In Line with DOL FAB 2017-01
By Benjamin Saper & Russell Hirschhorn on
On the heels of the Department of Labor’s temporary enforcement policy concerning the DOL conflict of interest rule and related exemptions (see our blog post here), the IRS announced that it is providing relief from excise taxes under Code § 4975 that conforms to the DOL’s temporary enforcement policy described in FAB 2017-01. The…
No Emergency Injunction Appeal in Chamber’s Challenge to DOL Rule
By Benjamin Saper & Russell Hirschhorn on
On March 20, 2017, a federal court in the Northern District of Texas denied the U.S. Chamber of Commerce’s emergency motion for an injunction pending appeal challenging implementation of the Department’s conflict of interest rule and related exemptions. The court applied the standard for evaluating a preliminary injunction motion and concluded that: (i) the Department…
USDOL Prevails in Kansas in Another Decision on Fiduciary Rule
By Benjamin Saper & Russell Hirschhorn on
On February 17, 2017, a federal district Court in Kansas upheld the U.S. Department of Labor’s conflict of interest rule and related exemptions in a suit brought by Market Synergy Group, Inc. This ruling on the merits follows the court’s prior ruling in November 2016 denying Market Synergy Group’s request for a temporary injunction. The…