Department of Labor Issues RFI Regarding Fiduciary Rule
July 11, 2017
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.
National Credit Union Administration (NCUA)
NCUA Chairman McWatters wrote a letter to the CFPB requesting a conditional exemption for credit unions with assets of $10 billion or more from its examination and enforcement authority.
Consumer Financial Protection Bureau (CFPB)
The CFPB announced the issuance of its arbitration rule. The rule prohibits covered providers of certain financial products from using an agreement that requires arbitration for future disputes and bars the consumer from filing or participating in a class action law suit. The rule takes effect 60 days after publication in the Federal Register.
CFPB Director Cordray delivered prepared remarks regarding the CFPB’s new arbitration rule.
The CFPB finalized amendments to the TILA/RESPA Integrated Disclosure Rule. The amendments include updates to the tolerances for payments, housing assistance lending, cooperatives, and privacy and sharing of information.
The CFPB announced the appointment of new consumer experts to the Consumer Advisory Board, Community Bank Advisory Council, Credit Union Advisory Council, and Academic Research Council.
Federal Reserve Board (FRB)
The FRB issued a report to Congress regarding the profitability of credit card operations at depository institutions.
The FRB announced the release of its 2016 Federal Reserve Payments Study. The study shows that consumers have decreased writing checks but have increased payments via card, electronic transfers, and ACH transactions.
The July issue of FedFocus is now available.
The FRB presented its Monetary Policy Report to Congress. The report addresses economic and financial developments, monetary policy, and special topics such as education and climbing the economic ladder.
Federal Deposit Insurance Corporation (FDIC)
The FDIC and FRB announced that public portions of the annual resolution plans for either large financial firms have been posted.
Office of Comptroller of the Currency (OCC)
The OCC issued its Semiannual Risk Perspective which addresses key issues facing banks, particularly those that pose a threat to the safety and soundness of banks.
Department of Labor (DOL)
The DOL announced that it has published a request for information regarding its fiduciary rule.
Federal Housing Finance Agency (FHFA)
The FHFA issued a proposed rule aimed at establishing new housing goals for Fannie Mae and Freddie Mach for 2018-2020.
Federal Trade Commission (FTC)
The FTC released an updated guide for its Children’s Online Privacy Protection Rule (COPPA). The updated guide includes new business models, new products, and new methods for obtaining parental consent.
Office of Foreign Assets Control (OFAC)
OFAC has updated the SDN list as of June 29, 2017. The last update prior to this was June 26, 2017.
Questions? Contact the Compliance Hotline: 1.800.546.4465, firstname.lastname@example.org.