What’s Next for the DOL Fiduciary Rule?
October 11, 2016 | by Beth Glavosek | Blue Vault
With the results of the U.S. election in, there’s already speculation about the future of the Department of Labor (DOL) fiduciary rule that was finalized last year. Some are defending the rule, while others are hoping it will be repealed or changed.
The rule, expected to take effect in April 2017, now stands in question. “It is extremely likely the DOL fiduciary rule will not go into effect as planned in April 2017,” says Edward Mills, a policy analyst at investment bank FBR Capital Markets. Mr. Mills said Mr. Trump would most likely delay or block the rule through legislation, “most likely through a rider to an appropriations bill.” (source: Wall Street Journal)
Investment News reports that some stakeholders, like the Financial Services Institute, are hopeful for change. “We stand ready to work with [Mr. Trump's] administration in ensuring Main Street Americans have access to objective and affordable financial advice as they save for a dignified retirement, pay for their children's education and help care for aging parents,” FSI president and chief executive Dale Brown said in a statement.
However, others have expressed caution. In a statement to Trust Advisor, Pamela Sandy, the 2016 president of the Financial Planning Association says, “A rule is much more difficult to undo than a piece of legislation, so for now nothing changes. While it’s too early to fully understand the intentions of President-Elect Trump and the incoming Congress with regard to the rule, our hope is he will continue the work of the current administration to safeguard the futures of millions of American retirees.”