In February 2017, President Donald Trump ordered the United States Secretary of Labor to perform an analysis of the U.S. Department of Labor’s (DOL) proposed investment fiduciary rule for retirement plan advice. The DOL first proposed the rule in September 2010 and re-proposed the rule in April 2015, finally making it final in April of 2016. The rule requires brokers and other financial advisers to put their clients’ best interests first when advising them about individual retirement accounts or 401(k) retirement plans. Pending the results of the analysis, the Secretary could be instructed to propose a new rule for public notice and comment, either revising or rescinding the rule. It is important to note however, that as of this writing, the fiduciary rule has not been stopped.
The DOL has filed two separate documents to the Office of Management and Budget for approval. One document is a proposed rulemaking that delays the regulation’s effective date (currently April 10, 2017) for 180 days. That document has a comment period as short as 15 days. The second document would start another round of public comment on the rule.
Barnes Dennig will continue to send updates on the fiduciary rule when they become available and let you know how this will impact you and your retirement plan.
If you have questions or concerns with how this rule will impact you or your clients, please contact a member of the Barnes Dennig team here with any questions.