DOL Fiduciary Rule To Likely See 18-Month Delay
The Labor Department has sent a final rule for an 18-month delay of its fiduciary regulation to the Office of Management and Budget for review.
On Thursday morning, the OMB posted on its website a notice that it had already received the delay language from the DOL. The OMB is likely to delay the measure, and when they do it will be returned to DOL, who will then release it publicly. The timeline for this, though, is unclear.
The DOL fiduciary rule, which requires brokers to act in the best interests of their clients in retirement accounts, was partially implemented in June. Under the the new delay proposal, implementation of the enforcement mechanisms of the rule would be delayed from Jan. 1, 2018, to July 1, 2019. This would be done to give the DOL an extended amount of time to re-assesses the impact of the rule, a task that was directed by President Trump. It's possible that their review could lead to substantial changes in the remaining parts of the rule.