This week, the U.S. Department of Labor (DOL) released a proposal to delay implementation of the fiduciary rule for 60 days. The rule was scheduled to start taking effect on April 10; under the proposal, it would not take effect until June 9.

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

The proposal to delay the rule is a response to a memorandum President Trump issued in early February, directing 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 proposed delay is intended to give the DOL more time to perform this review. If the DOL determines that the rule will adversely impact retirement savers, it will likely publish a notice to rescind, amend or further delay the rule.

The Big “I” supports delaying and reviewing the fiduciary rule and will submit comments to the DOL during the 15-day notice and comment period for the delay. Once the comment period closes, the DOL will likely issue a final rule to make the delay official.

In addition to the proposed delay, the DOL is also seeking comments regarding questions raised in the President’s February memorandum, and questions of law and policy concerning the fiduciary rule. These comments are due in April. 

Previously, the Big “I” submitted comments to the DOL on a proposal to give insurance marketing organizations (IMOs) more flexibility under the fiduciary rule. In the proposal, the Big “I” urged the DOL to delay the fiduciary rule as well as the IMO proposal.

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