Final rule reflects some concessions, but its broad scope and compliance costs will cause financial services advisers to re-evaluate their business models.

On April 6, 2016, the US Department of Labor (the DOL) released the final version of regulations (the Final Rule) that redefine who is a “fiduciary” of an employee benefit plan under the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code of 1986 (Code). The Final Rule additionally creates new, and amends certain, “prohibited transaction” exemptions. The Final Rule represents both an implementation challenge and a business opportunity for issuers and distributors of financial products as to who can most effectively develop and distribute products that are tailored to fit the new paradigm.