Navigating the DOL's Fiduciary Regulation

BNY Mellon's Pershing

Navigating the DOL's Fiduciary Regulation

Full Implementation of the DOL’s Conflict of Interest Rule Delayed

As communicated by the Department of Labor (DOL), certain compliance aspects of the Conflict of Interest Rule, in particular the end date of the transition period, have been extended from January 1, 2018, until July 1, 2019. The extension applies to the transition period related to three Prohibited Transaction Exemptions (PTEs):

  • Best Interest Contract (BIC) 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 new definition of investment advice remains in effect and requires compliance with the Impartial Conduct Standards. As a result, limited conditions of the PTEs also remain in effect.

At BNY Mellon’s Pershing, we continue to monitor the DOL's delay and other changes to the Conflict of Interest Rule. We will provide you with further information as it becomes available. We also encourage you to make your voice heard as the DOL has asked for input from our industry regarding Conflict of Interest Rule compliance.

Throughout the rule-making process, our teams have been personally invested in supporting our clients as firms navigate the impending changes. The more Pershing can understand your strategy, the better we can align the solutions we have developed. Please contact us to hear more about we can help support your strategies.

The DOL Fiduciary Rule Journey

The clock on potential changes to the DOL Fiduciary Rule officially began on February 3, 2017 with a Presidential Memorandum. What might we see next? View our timeline.

Since the Department of Labor's (DOL) Conflict of Interest rule was released in April, Pershing has focused on working closely with clients to help prepare for this historic and industry-changing regulation. We’ve developed key resources to help firms and advisors navigate the rule and its impact. Check back regularly for new items.

Client Guides

Fiduciary Rule Considerations: Getting Started Quick Guide for Firms [PDF]—Geared toward the home office, this guide provides a framework for how to address the DOL's final fiduciary rule.

Client Considerations for Defining and Executing Your DOL Strategy [PDF]—This home office guide provides a high-level overview of considerations for defining and ultimately executing your DOL strategy.

Complying With the Best Interest Contract Exemption [PDF]–This home office guide provides a high-level overview for understanding the Best Interest Contract Exemption.

The New DOL Fiduciary Rule: Six Things Advisors Should Do Today [PDF]—This advisor guide offers guidelines to help retain high-value clients, position their business for future growth and potentially increase efficiency and productivity in the new regulatory landscape.

Whitepapers

Review of the Department of Labor's (DOL) Final Definition of Fiduciary: Key Points IBDs, RIAs and Advisors Need to Know [PDF]—Written in collaboration with Thomas Roberts, a member of Groom Law Group's Fiduciary practice group, the article aims to provide an overview of key points introducing broker-dealers, RIAs and advisors need to know about the DOL's final rulemaking package on the definition of fiduciary.


BNY Mellon's Pershing

BNY Mellon's Pershing

BNY Mellon’s Pershing and its affiliates provide a comprehensive network of global financial business solutions to advisors, broker-dealers, family offices, hedge fund and ’40 Act fund managers, registered investment advisor firms and wealth managers. Many of the world’s most sophisticated and successful financial services firms rely on Pershing for clearing and custody; investment, wealth and retirement solutions; technology and enterprise data management; trading services; prime brokerage and business consulting.

Pershing helps clients improve profitability and drive growth, create capacity and efficiency, attract and retain talent, and manage risk and regulation. With a network of 23 offices worldwide, Pershing provides business-to-business solutions to clients representing approximately 7 million investor accounts globally. Pershing LLC (member FINRA, NYSE, SIPC) is a BNY Mellon company. 

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