DOL Delays Fiduciary Rule for 60 Days

On Wednesday, the Department of Labor (DOL) formally implemented a 60-day delay to the fiduciary rule.

The rule was originally set to take effect this Monday, April 10. Now, it will not begin to take effect before Friday, June 9. The Big “I” supports the delay and previously submitted comments to the agency expressing its stance.

The fiduciary rule is a federal regulation that tightens conflict of interest rules under the Employee Retirement Income Security Act and requires insurance agents and brokers who give guidance about certain retirement investments to adhere to a fiduciary standard of care.

The delay a response to a memorandum President Trump issued in early February, which directed the DOL to review the rule to “determine whether it may adversely affect the ability of Americans to gain access to retirement information and financial advice.” The delay is intended to give the DOL more time to complete this review.

If the DOL determines that the rule will adversely impact retirement savers, then it must undergo rulemaking to rescind, amend or further delay the rule as necessary.

Jennifer Webb is Big “I” federal government affairs counsel.