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DOL Unveils Final Fiduciary Rule, CUNA Analyzing Effects
Thursday, April 7, 2016 6:25 AM

The U.S. Department of Labor (DOL) unveiled its final, and controversial, fiduciary rule Wednesday morning. The Credit Union National Association is analyzing the complex rule and will be informing credit unions of the details.

CUNA President/CEO Jim Nussle said, “CUNA has been active on this issue and raised a number of concerns since the rule was first proposed, and we will continue to work closely with the regulators and lawmakers should we find in our analysis that there are issues in the final rule that negatively affect credit unions.”

The full text of the rule is now in the Federal Register, and the DOL has also posted a fact sheet, frequently asked questions document, and chart comparing the final rule with the proposed rule.

Under the rule, a person is a fiduciary if he or she receives compensation for providing advice based on the particular needs of the person being advised or if he or she directs that person to a specific plan sponsor, plan participant, or IRA owner.

Such advice can include, but is not limited to, information provided on what assets to purchase or sell and whether to rollover from an employment-based plan to an IRA. The fiduciary can be a broker, registered investment adviser, or other type of adviser, some of which are subject to federal securities laws and some of which are not.

CUNA has sent two separate comment letters to the DOL spelling out its concerns with the proposal, the first during the initial comment period, the second after the comment period was re-opened following a four-day public hearing in which speakers raised many of the concerns CUNA has.

CUNA also reached out to the National Credit Union Administration, asking it to weigh in on the potential burdens of the rule, and asked Congress to closely examine the rule, which it did through a House Ways and Means Committee hearing.