Removing Barriers Blog

Final DOL Fiduciary Rule Expected Next Week
Posted April 01, 2016 by CUNA Advocacy

The Department of Labor’s (DOL) final rule defining a “fiduciary” of an employee benefit plan under the Employee Retirement Income Security Act of 1974 (ERISA) is expected next month. This rule would add brokers and advisers providing advice to Individual Retirement Accounts (IRA) to the definition of fiduciary. The Wall Street Journal and others have reported that Labor Secretary Thomas Perez plans to roll out the rule at 11:30 a.m. on Wednesday, at the Center for American Progress in D.C. 

We have weighed in with the DOL expressing concerns about how this rule could detrimentally impact credit unions and their members.  Additionally, we have also supported legislative efforts to improve the rule for credit unions. This rulemaking has received significant attention from both chambers of Congress, and the US Senate Committee on Government Affairs also recently released a report outlining concerns on the DOL’s lack of coordination with other federal agencies during this rulemaking.  

There could likely be legal challenges to the final rule once it is released, and we will be providing additional information about the rule once it is released.