President Trump has issued a memorandum directing the Secretary of Labor to examine the U.S. Department of Labor's (DOL) Fiduciary Duty Rule to determine whether the rule may adversely affect individuals' abilities to gain access to retirement information and financial advice. In response to the memorandum, the DOL has stated that the agency will now consider delaying the applicability date of the rule.
On April 8, 2016, the DOL released a final rule ("Fiduciary Duty Rule") expanding the number of persons that are subject to fiduciary standards when they provide retirement investment advice, including exemptions that would allow advisers to continue to receive payments that could create conflicts of interest if certain conditions are met.
Review of Fiduciary Duty Rule
The memorandum directs the Secretary of Labor ("Secretary") to prepare an updated economic and legal analysis concerning the impact of the Fiduciary Duty Rule. Such analysis is expected to address the following topics:
In response to the memorandum, the DOL has stated that the agency "will now consider its legal options to delay the applicability date as we comply with the President's memorandum." Until further guidance is issued, however, the rule is set to become applicable on April 10, 2017.
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Source: HR 360, Inc.
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