DOL Rule Implementation Delayed, as Expected

As expected, the Department of Labor (DOL) has made official its proposal to delay implementation of its fiduciary rule by 60 days. The rule was originally slated to become effective on April 10. However, a President Trump directive to review the rule, with an eye to modify or repeal, led the DOL to propose a 60-day delay. That delay will become official when approved by the Office of Management and Budget (OMB) and published in the Federal Register no later than Friday, April 7. The rule will then become effective on June 9, at the earliest, if at all. While the vast majority of the 193,000 comment letters on the proposal opposed the delay, brokerage industry advocacy groups and many industry players are pushing for a longer delay and/or an outright repeal of the rule.