SIFMA and Other Associations Ask DOL for Extension of Comment Period on Conflict of Interest Rule

SIFMA and 16 other financial services trade associations (the "Associations") provided comments to the Department of Labor ("DOL") in which they requested an extension to the comment period for a proposed conflict of interest rule (the "Proposal").

The Associations explained that the Proposal comprises a "voluminous" amount of information, including elaborate new rules and "a host of detailed changes to existing and widely-used exemptions." The Associations argue that the industry will need time to assess their ability to comply with the conditions of the exemptions, which will require significant changes in policies and practices, as well as the production of an expansive new disclosure.

The Associations stated their belief that, given the Proposal's breadth and the "far-reaching" modifications that will be required to meet the conditions of the exemptive relief, the 75-day comment period does not provide "adequate time" to determine whether the Associations can effectively service the needs of retirement investors within the framework presented in the Proposal. Accordingly, the Associations requested a 45-day extension of the comment period, for a combined 120-day period, to provide "thoughtful and comprehensive" input.

See: Comment Letter.Related news: U.S. Department of Labor Issues Proposed Rule Regarding Fiduciary Definition (April 14, 2015).