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Removing Barriers Blog

DOL Fiduciary Delay Legislation Introduced in New Congress
Posted January 09, 2017 by CUNA Advocacy

Rep. Joe Wilson (R-S.C.) introduced the Protecting American Families’ Retirement Advice Act last week that would delay the Department of Labor’s (DOL) fiduciary rule. The legislation would delay implementation of the rule for two additional years after April 2017, when the first implementation date is currently set.

CUNA supports the intent of the DOL rule to protect investors but sought clarity about the overly broad definition of investment advice in addition to other concerns with the DOL’s rule, which was finalized in April 2016.  Our comment letter and a follow-up letter outlined concerns about how the DOL’s fiduciary rule could impact credit unions and CUSOs, and their ability to continue to serve investors of all means, including those with low-or-moderate incomes.

CUNA was pleased that the DOL addressed some of its questions, and provided clarifications about what activities are considered education v. advice in the final rule. However, credit unions recommending specific investment products in individual retirement accounts (IRAs) and CUSOs can still be implicated by the rule, and have faced compliance burdens in navigating the applicability and complexity of it.

We previously supported Congressional efforts modifying the DOL rule last Congress and believe the new legislation would benefit credit union members, as credit unions continue to determine how their offerings for saving and planning could be impacted.