Fiduciary Rule Re-Proposal Still 'Months and Months' Away, Borzi Says
Phyllis C. Borzi, assistant secretary of labor for the Employee Benefits Security Administration, said DOL plans to re-propose the fiduciary rule, but the department still has “a lot more work to do."
It is “months and months away before we're ready to re-issue the proposal,” she said. However, Borzi emphasized the importance of the re-proposal to DOL.
“We're not going to drop these efforts,” she said, calling the clarification of the definition of “fiduciary” an “important part of the fabric of the work we're doing at the Department of Labor to protect consumers.”
Borzi said the re-proposal will include “a very robust economic analysis” and amendments to prohibited transaction exemptions in response to requests for clarification in the individual retirement account or rollover context and for revenue-sharing scenarios.
“We have to be able to find that allowing these conflicted practices is ultimately in the best interest of participants and beneficiaries and, if we can't make that finding, we're not going to issue the exemption,” Borzi said.
Regarding the response Borzi expects from fiduciaries, she said: “Do I think it will be warmly embraced by the industry? I don't think so, because there were certain people who told us to forget the whole thing.”