On Thursday, February 9, the Department of Labor (DOL) filed a draft proposal with the Office of Management and Budget (OMB) to delay the fiduciary rule's implementation. It is expected to take several weeks for OMB to respond to the request, before which the delay proposal process cannot start. After the OMB responds, a 15-day comment period would occur before a delay proposal is finalized.
On February 3, President Trump issued an executive memo directing the DOL to review the fiduciary rule and consider delaying or replacing it. A draft of the memo called for a 180-day delay to the April 10 effective date. The final memo did not include a specific timeline.
President Trump instructed the secretary of labor to establish whether the rule would negatively affect access to retirement information and financial advice, and oversee a new economic and legal analysis of the rule's "likely impact." The DOL would be required to publish a proposed rule to overturn any negative impact or inconsistency with administrative policy.
We will keep you informed of the latest updates. If you have any questions, please contact Lincoln Gray, Partner in Charge, Broker-Dealer and Investment Advisory Services, at 314.983.1235 or lgray@bswllc.com.
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