The Department of Labor (DOL) Fiduciary Rule has been updated to expand the agency’s interpretation of the existing five-part test to determine when an individual is an ERISA fiduciary. For the period of February 16, 2021, through January 31, 2022, the DOL advised it would not pursue prohibited transactions claims against ERISA fiduciaries who comply with the impartial conduct standards for transactions. Impartial conduct standards require fiduciaries to: (1) provide advice that reflects the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use, (2) receive only reasonable compensation, and (3) make statements that are not materially misleading.
However, beginning January 31, 2022, the DOL will require compliance with the Fiduciary Rule. We are providing this information to assist you with compliance and will continue to monitor DOL activity and advise you of any further enforcement delays.