DOL releases new fiduciary rule

What is old is new again. Again, the Department of Labor (DOL) is trying to unveil a new fiduciary rule.

The DOL finalized the new rule, which updates the definition of an investment advice fiduciary adopted in 1975 under the Employee Retirement Income Security Act and the Internal Revenue Code. It takes effect Sept. 23, 2024.

The DOL stated that it has also amended related prohibited transaction class exemptions, or PTEs, that are available to investment advice fiduciaries, which includes PTE 2020-02 on rollovers and 84-24 on annuities.

While the new fiduciary rule and the amendments to the PTEs are effective on Sept. 23, 2024, there is a transition period under amended PTEs 2020-02 and 84-24, which go into effect on September 23, 2025. A change in the White House in January will likely change everything.

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