DOL extends temporary enforcement policy for conflicted fiduciaries, delays rollover enforcement

Eversheds Sutherland (US) LLP

Eversheds Sutherland (US) LLP

In Field Assistance Bulleting 2021-02, published on October 25, 2021, the US Department of Labor announced with respect to its Fiduciary Rule 3.0 that:

  • The temporary ERISA enforcement policy for conflicted fiduciary investment advice, scheduled to sunset on December 20, 2021, is extended through January 31, 2022, for investment advice fiduciaries who are working diligently and in good faith to comply with DOL’s “Impartial Conduct Standards”; and
  • Through June 30, 2022, DOL will not enforce the specific documentation and disclosure requirements for rollover advice required under PTE 2020-02; but
  • All other requirements of PTE 2020-02 will be subject to full enforcement as of February 1, 2022.

This transition relief, while less than DOL should have provided given the expected proposal of revised rules in the very near term, is welcome and will be helpful to:

  • Permit the conversion in compliance systems from the temporary enforcement policy to PTE 2020-02 on a sensible business date;
  • Reduce the cost of and potential confusion created by the fiduciary acknowledgement and other disclosures required by PTE 2020-02, which now can be coordinated and transmitted with cyclical communications and disclosures sent in the ordinary course in January; and 
  • Provide more time for vendors to perfect and investment advice fiduciaries to install reliable solutions for obtaining and processing the comparative cost information and other documentation DOL required under PTE 2020-02 for rollover advice.

For more information

For resources and information about this regulatory process, visit Eversheds Sutherland’s

  • Text of and supporting materials for Proposal 1.0, Rule 2.0 and Rule 3.0
  • Pleadings in the litigations that challenged Rule 2.0
  • Articles, presentations and client alerts
  • Videocasts about Rule 2.0


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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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