In the on again, off again saga surrounding the DOL rule delay (fiduciary rule implementation), it appears that we are once again leaning towards a DOL rule delay. A few weeks ago, news reports were swirling about a delay in the DOL fiduciary rule by an executive memorandum (EM) by the Trump Administration.
However, the official memorandum only asked the DOL to revisit the rule, not to delay its implementation. The EM asked the DOL to review whether the rule would be harmful to retirement plan investors as well as whether it puts unnecessary burdens on the retirement industry.
Fast-forward two weeks and Reuters is reporting that the US Labor Department is preparing a process that will delay implementation of the DOL Fiduciary Rule. According to the Reuters report, the DOL has sent two separate documents to the Office of Management and Budget for approval. Reuters cites unnamed sources “familiar with the agency’s actions”.
It is believed that the documents will pave the way for the DOL to delay implementation of the rule, now scheduled for April 10, 2017 to allow for a comment period as little as 15 days.
According to the Reuters report:
The second document would start another round of public comment on the rule, which requires brokers and other financial advisers to put their clients’ best interests first when advising them about individual retirement accounts or 401(k) retirement plans.
On Wednesday, a U.S. District Court judge upheld the legality of the rule.
The Trump administration could write a new rule to replace or eliminate the Obama-era one. A spokesman from the Labor Department declined to comment.
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