DOL Fiduciary Rule: What the Proposed Delay Means for its Future
President Trump’s 3 March Memorandum directing the Department of Labor (DOL) to analyze whether the fiduciary rule it adopted in April 2016 (with an applicability date of 10 April 2017) “may adversely affect the ability of Americans to gain access to retirement information and financial advice” has created uncertainty about the ultimate future of the rule.
In order to perform the analysis required by the Administration’s Memorandum, the DOL has proposed for comment whether to extend the applicability date of the rule for 60 days to 9 June 2017. In its comment letter to the DOL, CFA Institute reiterated its support for the aim of the DOL rule — that advice providers to the retirement community should put the interests of investors before their own.
Although tempered by a number of concerns about the complexity of the rule, we believe that requiring a higher standard of care among those providing investment advice is long overdue. In our letter, we encouraged “prompt and conclusive action” to address the Administration’s concerns and to bring the DOL rule into full effect — at least until the SEC has enacted its own best-interests rule.
CFA Institute has offered extensive commentary on fiduciary duty and the DOL rule. Please visit Market Integrity Insights to learn more.
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