Top RIA Compliance News Articles for the Week of February 25, 2017

1. ‘As of Today,’ April 10 is DOL Fiduicary Compliance Date: Attorney (Author- Melanie Waddell, Think Advisor)

Think Advisor’s Melanie Waddell brings us this article on the current status of the DOL fiduciary rule. Dan Kleinman, partner at Morgan Lewis & Bockius in Washington, stated at this week’s Investment Adviser Association’s (IAA) annual compliance conference, “as of today, April 10 is the applicability date.” However, Kleinman also believes that there is an 80% to 90% chance that April 10 will come around and the rule won’t be applicable. Waddell included in her article that the “DOL released on Wednesday a proposed rule to extend for 60 days the applicability date of its fiduciary rule under the Employee Retirement Income Security Act.” This would extend the rule’s applicability date to June 9, 2017. Check out this article to read more on the current status of the potential delay of the DOL fiduciary rule. 

2. DOL Decision Means Return to ‘Limbo’ For Fiduciary Rule (Author- Christopher Robbins, Financial Advisor)

After the DOL announced its decision at attempting to delay the fiduciary rule, mixed opinions were heard among the industry. Christopher Robbins reports, “The DOL on Wednesday released statements indicating it was seeking issuance of a new rule that would delay enforcement of the fiduciary rule 60 days beyond its April 10 applicability date.” Skip Schweiss, managing director for retirement plan services and advisor advocacy at TD Ameritrade believes, “the DOL might not be successful in its attempt to delay the April 10 implementation date.” Director of global marketing at Advicent, Anthony Stich, states that, “we don’t feel that anyone truly knows the outcome of the DOL rule and its subsequent impact on the industry.” Read more of the various opinions from the industry of the possible fiduciary rule outcomes in Robbins’ article.

3. Acting SEC Chair Wants To Put Hold On Dodd-Frank Rule-Making (Author- Ted Knutson, Financial Advisor)

Financial Advisor’s Ted Knutson reports on Michael Piwowar, acting chair of the SEC, and his opening speech at the IAA Compliance Conference that took place on Thursday. Piwowar used his speech as an opportunity to provide a “laundry list” of his current short and long term priorities he has for the agency. Some short term priorities include: a 90-day hiring freeze for the SEC and putting a hold on Dodd-Frank rule-making to focus on existing regulations. In the long term, Piwowar expects lawyer Jay Clayton to be confirmed. In addition, Piwowar voices his opinion on a proposal to have third parties conduct RIA exams. Piwowar claims, “we are going to have some choices” in reference to how technology will be helping decide where to place examiners.

4. SEC May Revisit Outside Help For Adviser Exams (Author- Kenneth Corbin, Financial Planning)

Kenneth Corbin reports that due to the increased and rapid growth in SEC-registered RIA firms starting their own firms, the SEC continues to consider third party audits. Peter Driscoll, acting director of the Office of Compliance Inspections and Examinations (OCIE), says “61 advisers have registered with the commission in the past two weeks. More than 200 have registered since January, and about 300 since the November election.” Corbin states, “OCIE recently reorganized itself, shifting about 100 examiners from the brokerage wing of the shop to the RIA unit.” This is due to the increased growth in the RIA industry. Last year, the OCIE conducted an average of 4.91 examinations per examiner, which is up from 4.31 from the previous year. 

5. DOL Proposal to Delay Fiduciary Rule (Author- Jason Roberts, LinkedIn)

Jason Roberts, CEO of Pension Resource Institute, and one of our top 5 DOL fiduciary rule experts to follow, provides further insight into the potential delay of the fiduciary rule. Roberts confirms that, “the proposed 60-day delay would be effective on the date of the publication of a final rule in the Federal Register. In other words, until that happens the applicability date is still April 10th.” Roberts elaborates that the DOL is attempting to justify the delay of the rule based on the rationale that since the fiduciary rule may ultimately be altered, it does not make sense make a new rule effective that may be altered shortly thereafter. 

Don’t forget to check out last week’s top RIA compliance news articles on new guidance issued by the SEC in regards to a potential custody issue and robo advisers.. Be sure to check back next Friday for next week’s top articles!