01.25.21
What Labor Nominee Walsh Means for the Fiduciary Rule’s Future
by: Keith Blackman; Joshua Klein; Russell Gallaro
Boston Mayor Martin Walsh's nomination to to head the U.S. Department of Labor (DOL) raises questions for the future of the DOL's fiduciary rule. Since the Prohibited Transaction Exemption does not become effective until after Jan. 20, it is likely that Walsh, at the very least, will suspend its implementation. But such an action does not mean financial professionals should let their guard down: most commentators expect Walsh and the Biden administration to take a stricter approach to regulation of investment advice, including advice to roll over assets into an IRA. The DOL under the Biden administration will have until Feb. 16, 2021, to decide whether to suspend the Prohibited Transaction Exemption before it goes into effect.
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