By Cory Fiduciary Rule on Pace for June, but Changes May Be Close
This is a good review of the Fiduciary Rule that has all but been forgotten in the media over the past couple months. No one knows what the updated rule will be but it seems like we will be finding out soon…
This article courtesy of FactSet. Click here to visit the FactSet webiste for more great posts.
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The Department of Labor’s (DOL) Fiduciary Rule is set for partial implementation on June 9.
On March 1, the DOL proposed a 60-day delay to the Fiduciary Rule, seemingly setting the stage for its repeal or revision. The rule, which requires financial advisors and brokers to put their clients’ investment interests before their financial incentives, was set to start taking effect April 9. The Labor Department’s proposal to push that effective date back 60 days came after President Donald Trump signed an executive action on February 3 asking the acting Secretary of the Labor Department to revise or rescind the rule. The DOL 60-day delay request, in response to Trump’s executive action, came in an official statement, which stated, “The proposed extension is intended to give the department time to collect and consider information related to the issues raised in the memorandum before the rule and exemptions become applicable.”
However, rather than delay the Fiduciary Rule’s implementation again, it now appears will forge ahead, with the potential for repeal and replacement further down the road.
On May 23, Alexander Acosta, Trump’s new DOL Secretary, wrote an opinion piece for The Wall Street Journal called Deregulators Must Follow the Law, So Regulators Will Too, where he stated:
“The Labor Department has concluded that it is necessary to seek additional public input on the entire Fiduciary Rule, and we will do so. We recognize that the rule goes into partial effect on June 9, with full implementation on Jan. 1, 2018. Some have called for a complete delay of the rule.
We have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input. Respect for the rule of law leads us to the conclusion that this date cannot be postponed. Trust in Americans’ ability to decide what is best for them and their families leads us to the conclusion that we should seek public comment on how to revise this rule. Under the Obama administration, the Securities and Exchange Commission declined to move forward in rule-making. Yet the SEC has critical expertise in this area. I hope in this administration the SEC will be a full participant.”
The Securities Industry and Financial Markets Association (SIFMA), is the main lobbying group of the U.S. securities industry. It represents the broker-dealers, banks, and asset managers whose nearly 1 million employees provide access to the capital markets, raising over $2.5 trillion for businesses and municipalities in the U.S., serving clients with over $18.5 …read more
Source:: The Korelin Economics Report
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