PSCA Executive Reports
January 31, 2017
At this time, it does not appear that the regulatory freeze Memo will impact the Fiduciary Rule, which is currently effective but not applicable until April 10, 2017.
There are a number of rumors circulating in DC about a potential order from the White House to delay the rule, but Administration officials have not publicly confirmed what they intend to do. Meanwhile, the DOL issued two new sets of FAQs on the fiduciary rule. The first set of FAQs focuses on the prohibited transaction exemptions accompanying the Fiduciary Rule, while the second set of FAQs addresses interpretive questions about the Fiduciary Rule itself, including several of the important exceptions to fiduciary status included in the rule. The FAQs were accompanied by a guide for consumers to better understand their rights and the role of financial advisers.
On the Hill, Representative Joe Wilson (R-SC) introduced a bill to delay the implementation of the fiduciary rule for two years. Senator Isakson (R-GA) has indicated that he intends to reintroduce legislation soon to provide a substantive replacement to the fiduciary rule. The current draft resembles legislation Senator Isakson introduced in the last Congress, and is also similar to a bipartisan House bill sponsored by Representatives Peter Roskam (R-IL), Richard Neal (D-MA), and others.