On Friday April 7th, the Department of Labor published in the Federal Register amendments to its fiduciary regulation (the “New Fiduciary Rule”) and related prohibited transaction exemptions (the “Exemptions”). The amendments delay until June 9, 2017 the “Applicability Date” of the New Fiduciary Rule and the Exemptions.

In addition, the amendments provide a transition period from June 9, 2017 through January 1, 2018 during which conditions of the Exemptions for covered transactions are limited to the “Impartial Conduct Standard”. Since, many private investment funds intend to rely on the “grandfather” provisions of the BIC exemption, which are tied to the Applicability Date, the delay of the additional conditions of the Exemptions until January 2018 will not be of much benefit to private investment funds.

The Department of Labor is reviewing the substantive provisions of the New Fiduciary Rule and the Exemptions and may further delay the Applicability Date. We will be monitoring the Department’s activities and will keep you informed of any changes to the New Fiduciary Rule and Exemptions, as well as any additional delays to the Applicability Date.

On Friday April 7th, the Department of Labor published in the Federal Register amendments to its fiduciary regulation (the “New Fiduciary Rule”) and related prohibited transaction exemptions (the “Exemptions”). The amendments delay until June 9, 2017 the “Applicability Date” of the New Fiduciary Rule and the Exemptions.

In addition, the amendments provide a transition period from June 9, 2017 through January 1, 2018 during which conditions of the Exemptions for covered transactions are limited to the “Impartial Conduct Standard”. Since, many private investment funds intend to rely on the “grandfather” provisions of the BIC exemption, which are tied to the Applicability Date, the delay of the additional conditions of the Exemptions until January 2018 will not be of much benefit to private investment funds.

The Department of Labor is reviewing the substantive provisions of the New Fiduciary Rule and the Exemptions and may further delay the Applicability Date. We will be monitoring the Department’s activities and will keep you informed of any changes to the New Fiduciary Rule and Exemptions, as well as any additional delays to the Applicability Date.

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If you have any questions about the New Fiduciary Rule or the Exemptions, please contact one of the attorneys listed below.