Bruce Simonetti Quoted in Compliance Reporter on Department of Labor’s New Fiduciary Rule
Bruce Simonetti, a partner in the tax practice at Akin Gump, has been quoted in the Compliance Reporter article “Fiduciary rule: Last-minute prep and continued uncertainty,” regarding the Department of Labor’s new fiduciary rule and the preparations taking place to comply with it. The article reports that many registered investment advisors and broker-dealers are facing a June 9 initial compliance deadline.
On that date, as the article notes, the fiduciary rule will go into effect, along with new exemptions, such as one that allows affected financial advisers to continue receiving variable commissions for managing transactions in client accounts. Other provisions of the rule come with a January 1, 2018, effective date.
The lack of readiness among firms is more common among smaller shops than larger ones, with greater resources at their disposal, said Simonetti. “I would suspect…that with the smaller players,” he added, “it is going to be haphazard and I doubt they are as well prepared. I suspect there will be vast non-compliance with these rules during the interim period and beyond.”