Acosta Getting Heat to Further Delay Fiduciary Rule

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By Kristen Ricaurte Knebel

Critics and supporters of the DOL’s fiduciary rule are seeking meetings with Secretary of Labor Alexander Acosta during what many see as a critical week if the department wants to further delay the rule.

Several groups, including the American Council of Life Insurers, the Financial Services Roundtable and the AARP, have requested meetings with Acosta to discuss the fiduciary rule, the groups told Bloomberg BNA. As of now, no meetings have officially been set.

Portions of the Department of Labor’s final rule, which aims to reduce the allegedly conflicted investment advice given to retirement savers, were delayed until June 9. Other portions were delayed until at least Jan. 1, 2018, while the rule is under a presidentially mandated review by the agency.

Tim Pawlenty, the FSR’s president and chief executive officer and the former governor of Minnesota, requested a meeting with Acosta, along with other CEOs in the financial services industry to talk about a further delay of the rule, Jill Hoffman told Bloomberg BNA. Hoffman is the FSR’s vice president of government affairs for investment management,

The FSR sent a letter to Acosta May 1 asking that he delay the fiduciary rule’s June 9 applicability date until a full review of the rule has been completed. The ACLI and the Financial Services Institute also issued statements following Acosta’s confirmation last week urging a full delay of the rule.

Members of Congress also requested that Acosta consider a full delay of the rule. In a May 2 letter, 124 members of the House, including Reps. Phil Roe (R-Tenn.), Robert B. Aderholt (R-Ala.) and Erik Paulsen (R-Minn.), asked Acosta to fully delay the rule. This comes on the heels of an April 28 letter from Chairman of the Senate Health, Education, Labor and Pensions Committee Lamar Alexander (R-Tenn.) and other panel members requesting that Acosta conduct “an exhaustive review” of the rule before any part of it becomes applicable.

The DOL didn’t return several requests from Bloomberg BNA for comment on whether Acosta will seek a further delay of the rule.

To contact the reporter on this story: Kristen Ricaurte Knebel in Washington at kknebel@bna.com

To contact the editor responsible for this story: Jo-el J. Meyer at jmeyer@bna.com

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