DOL Announces That Final Investment Advice Exemption Will Go into Effect on February 16, 2021

When the Department of Labor issued the Final Investment Advice Exemption in December 2020 (see our prior Advisory), a key question was whether the incoming Biden Administration would seek to delay or overturn the new exemption.  In an announcement on February 12, 2021, DOL answered that question and stated that the Final Investment Advice Exemption will come into effect as scheduled on February 16, 2021 without changes.  However, DOL reserved the right to make future changes and suggested in the announcement that it may, in the future, make improvements" to both the exemption and to the regulatory definition of "investment advice fiduciary."  Helpfully, DOL reaffirmed that transition relief under the temporary enforcement policy announced in FAB 2018-02 will remain in effect until December 20, 2021 to allow financial institutions time to comply with the new rule.

© Arnold & Porter Kaye Scholer LLP 2021 All Rights Reserved. This Advisory is intended to be a general summary of the law and does not constitute legal advice. You should consult with counsel to determine applicable legal requirements in a specific fact situation.