Views on improving the integrity of global capital markets
20 March 2017

DOL Fiduciary Rule: What the Proposed Delay Means for its Future

Posted In: Fiduciary Duty

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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Photo Credit: ©Getty Images/Alex Wong

About the Author(s)
Linda Rittenhouse, JD

Linda Rittenhouse, JD, was a director of capital markets policy at CFA Institute. She focused primarily on issues related to investment products and investment regulation. Rittenhouse holds a JD degree.

1 thought on “DOL Fiduciary Rule: What the Proposed Delay Means for its Future”

  1. Jason says:

    we encouraged “prompt and conclusive action” – If you want to keep the poor, poor and the rich, rich then push for the rule. I have seen the industry consolidating the investment options. Guess what, the worst investments are still going to be in place and now there will be less competition so the investment managers can become lazy and inefficient.

    Add to that, since compliance costs are going through the roof, the smaller investor will be left behind. The UK did this and it completely alienated the small investor.

    Then again that is probably why the government came out with MyRA the same year. Push out the competition and here comes the public option.

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