DOL 18-Month Delay Rule Taking Place Nov. 29
DOL 18-Month Delay Rule Scheduled for Publication in the Federal Register on November 29th
WASHINGTON (November 27, 2017) — Last week the Office of Management and Budget approved the 18-month delay rule, extending the applicability date of the DOL fiduciary rule until July 1, 2019. The DOL filed the final delay rule with the OMB for approval on November 1, 2017. Today it was announced that the delay rule will be published in the Federal Register on Wednesday, November 29th – making the 18-month delay official.
After reviewing the public comments, the Department of Labor has adopted the proposed delay rule without change. The delay of the applicability date until July 1, 2019 extends the transition period for the implementation of the Best Interest Contract Exemption (BICE), as well as the rule’s other exemptions, including Principal Transaction Exemption 84-24. Accordingly, during this time, all fixed annuities – including fixed indexed annuities – will be subject to PTE 84-24. The requirements under the impartial conduct standards that were implemented on June 9th remain in effect.
The delay will allow the DOL time to consider possible changes and alternatives to these exemptions and to complete its full review of the rule as mandated by President Trump. NAFA submitted a comment letter on September 15, 2017 supporting the delay of the applicability dates for the BICE and for PTE 84-24 and advocating to keep fixed indexed annuities under PTE 84-24. NAFA also launched a grassroots campaign in support of the delay. We very much appreciate NAFA members’ support of this effort.
NAFA, the National Association for Fixed Annuities, is the premier trade association exclusively dedicated to fixed annuities. Our mission is to promote the awareness and understanding of fixed annuities. We educate annuity salespeople, regulators, legislators, journalists, and industry personnel about the value of fixed annuities and their benefits to consumers. NAFA’s membership represents every aspect of the fixed annuity marketplace covering 85% of fixed annuities sold by independent agents, advisors and brokers. NAFA was founded in 1998. For more information, visit www.nafa.com.