FIA sent a letter urging the Department of Labor to extend the applicability date of the Fiduciary Rule by 60 days and noted that a longer extension would be appropriate. The rule, which defines who is a “fiduciary” of an employee benefit plan under the Employee Retirement Income Security Act of 1974, is causing enormous upheaval in the financial industry. Its impact extends to clearing members, many of which are embedded in large banks. Not only are clearing members considering modifications to their client documentation as client service providers, but they also are in many cases having to coordinate with other divisions and affiliates within their bank structure on Fiduciary Rule implementation. In the absence of an extension of the April 10, 2017, applicability date, it is possible that plan trading in futures, foreign exchange, swaps, and repurchase agreements will be harmed.
The full letter is available in Resources on the right.
