Labor Department Seeks 18-Month Delay in Fiduciary Rule
Observers predict a push for major revisions
In a brief filed Wednesday in a Minnesota lawsuit, the Department of Labor indicated that it had submitted to the Office of Management and Budget (OMB) a proposal to delay implementation of the remaining parts of its fiduciary rule from January 1, 2018, until July 1, 2019. The OMB must review and approve the proposal before it can go into effect. Industry observers say the move suggests the retirement-savings rule will emerge from a reevaluation with significant revisions. The postponement of the rule is commensurate with the delays that were sought by financial industry opponents of the rule, some of whom asked for an 18-month time-out. Two provisions of the rule were implemented in June. The remaining parts include the so-called best-interest contract exemption that allows brokers to charge variable compensation for products if they sign a legally binding agreement to put their clients' interests ahead of their own.
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