Rep. Joe Wilson (R-S.C.) introduced a bill Friday that would delay the Department of Labor’s (DOL) fiduciary rule, a delay that CUNA believes would be beneficial to credit unions and their members. CUNA sought clarity about the DOL’s overly broad definition of investment advice in addition to other concerns with the DOL’s rule, which was finalized in April.
The DOL provided some CUNA-sought clarifications concerning whether communications with members would be considered financial education versus investment advice. However, credit union service organizations (CUSOs) and any credit union employees receiving compensation for recommending specific investment products in individual retirement accounts (IRAs) could still be implicated by the rule, and have faced compliance burdens in navigating the applicability and complexity of it.
“While CUNA appreciated that the DOL provided some of our requested clarifications in their final rule, credit unions offering IRAs and CUSOs still have some concerns about the impact this rule could have on members’ ability to receive help saving and planning for the future,” said Ryan Donovan, CUNA’s chief advocacy officer. “We believe a delayed implementation of this rule would benefit credit union members.”
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