The Labor Department has submitted a proposal to the Office of Management and Budget (OMB) to extend the transition period and full Best Interest Contract (BIC) applicability date of the fiduciary regulation.
The notice – which indicates that the Labor Department intends to push back to July 1, 2019, the full BIC applicability date, while also extending the transition period to that date – came in the form of a “notice of administrative action” submitted in the U.S. District Court for the District of Minnesota where litigation regarding the fiduciary regulation brought by Thrivent Financial for Lutherans is still pending.
The notice indicates that the defendants in the case – the United States Department of Labor and R. Alexander Acosta, Secretary of Labor – are notifying the court that on Aug. 9, 2017, the Department submitted to the Office of Management and Budget proposed amendments to three exemptions, entitled:
“Extension of Transition Period and Delay of Applicability Dates From January 1, 2018, to July 1, 2019; Best Interest Contract Exemption (PTE 2016-01); Class Exemption for Principal Transactions in Certain Assets Between Investment Advice Fiduciaries and Employee Benefit Plans and IRAs (PTE 2016-02); Prohibited Transaction Exemption 84-24 for Certain Transactions Involving Insurance Agents and Brokers, Pension Consultants, Insurance Companies, and Investment Company Principal Underwriters (PTE 84-24).”
The notice indicates that notification of the submission becomes publicly available the morning after submission (around 10:00 a.m. on Thursday, Aug. 10).
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