On February 15, FIA submitted a letter to the Department of Labor (DoL) a delay to the Fiduciary Rule applicability date.
FIA noted that the Fiduciary Rule will have a significant impact on the financial industry and that such impact extends to futures commission merchants (FCMs), many of which belong to larger bank structures, in their providing clearing and execution services to U.S. customers. In order to implement the Fiduciary Rule, FCMs are “considering modifications to their client documentation as client service providers” as well as coordinating with other divisions within their bank structure on Fiduciary Rule implementation.
The letter signed by FIA President and CEO, Walt Lukken, noted “in absence of a delay of the April 10, 2017 applicability date, we fear that the plan trading in such usual and important instruments as futures, foreign exchange, swaps and repurchase agreements will be harmed” and requested the DoL delay the Fiduciary Rule implementation date by a minimum of 180 days.
The full letter is available in Resources on the right.
