The Labor Department has proposed a two-month delay to its fiduciary rule. Instead of starting April 10, the rule would be delayed until June 9.
Under an announcement published in the March 2 Federal Register, the agency would use the interim period to examine the rule’s impact on retirement savers.
The Office of Management and Budget in February ordered the DOL to examine the rule. If the DOL concludes that the rule is inconsistent with the Trump Administration’s priorities, it will propose rescinding or revising the rule, OMB said.
The delay also would apply to related prohibited transaction exemptions, including the Best Interest Contract Exemption, that the agency issued along with the rule in April 2016.
The proposal includes a 15-day public comment period on the delay and 45-day public comment period on the examination of the rule.
The rule is aimed at reducing conflicted advice given to retirement investors. Investment advisers subject to the rule must put their clients’ interests ahead of their own when handling retirement accounts.
The DOL said it “invites comments on market responses to the final rule and the PTEs to date, and on the costs and benefits attached to such responses.”
Questions for consideration during the comment period include whether investment firms anticipate changes in consumer demand for investment advice and investment products, and whether some firms are moving to abandon or deemphasize the small individual retirement account investor or small plan market segments, it said.
See related story, DOL Officially Proposes Delay of Fiduciary Rule.
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