Department of Labor Issues RFI Regarding Fiduciary Rule

The RFI seeks feedback on possible changes to the rule and/or exemptions, and input regarding the advisability of extending the Jan. 1, 2018, applicability date.

7/11/17

The Department of Labor (DOL) published a Request for Information (RFI) on July 6, 2017, in connection with the agency’s Fiduciary (“Conflict of Interest”) Rule. The DOL delayed the rule’s “applicability date” from Apr. 10, 2017, to June 9, 2017. However, certain provisions in the rule’s exemptions are further delayed to Jan. 1, 2018, while the DOL conducts its ongoing examination of the requirements per President Trump’s February 2017 memorandum.

The RFI specifically seeks feedback on possible changes to the rule and/or exemptions; and input regarding the advisability of extending the Jan. 1, 2018, applicability date of certain provisions in the Best Interest Contract (BIC) Exemption; Class Exemption for Principal Transactions in Certain Assets between Investment Advice Fiduciaries and Employee Benefit Plans and IRAs; and Prohibited Transaction Exemption 84–24.

Comments related to extending the Jan. 1, 2018 applicability date are due on or before July 21, 2017. Comments in response to all other issues should be submitted to DOL on or before Aug. 7, 2017. Click here for the RFI.

Question of the Week

Does the SCRA require us to stop collection efforts on a member who has just gone on active duty?

The SCRA does not require credit unions to discontinue all collection efforts once the servicemember goes on active duty.  However, a servicemember who is having difficulties making loan repayments or is being sued for repayment of an obligation may petition a court to reduce payments, or stay (suspend) any enforcement of the obligation. The credit union must cease all collection activity if it receives a court order to do so. Otherwise, the credit union can continue to collect on the debt.  Proceed with caution if the nonpayment has reached the level where the credit union is contemplating repossession or foreclosure of any security property. For obligations incurred prior to active duty, Sections 303 and 304 of the SCRA will require the credit union to first obtain a court order before seizing the property in order for the repossession or foreclosure to be valid.

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Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.