Earlier this week, the Department of Labor (DOL) published its final rule creating a new exemption for investment advice fiduciaries. The exemption will be effective 60 days after its publication in the Federal Register. The DOL rule was originally proposed back in June.

The standards in the DOL's exemption announced earlier this week align with standards of other regulators, including the Securities and Exchange Commission's “best interest" standard.

The final rule will apply to investment advisers, broker-dealers, banks, insurance companies and their employees, agents, and representatives who provide fiduciary “investment advice."

This new exemption would allow financial advisers to collect commissions and other compensation when offering retirement advice. The rule will replace the Obama-era "fiduciary rule" which was vacated in 2018 by the United States Court of Appeals for the 5th Circuit. The Big “I" had consistently advocated against the adoption of the Obama administration's “fiduciary rule."

“Today's action provides clear regulatory standards that ensure American workers and retirees have access to high-quality, affordable investment advice," noted U.S. Secretary of Labor Eugene Scalia upon release of the final rule. “In tandem with action taken last year by the Securities and Exchange Commission, this exemption gives Americans a greater opportunity to invest in the American economy with the assistance of professionals acting in their best interest."

Wyatt Stewart is Big “I" assistant vice president of federal government affairs.