DOL Fiduciary Rule Challenged Again
January 20, 2017 | by Beth Glavosek | Blue Vault
The Department of Labor’s long-debated Fiduciary Rule is once again being challenged by a group of lawmakers who say that the regulation is burdensome and costly. Congressman Joe Wilson (R-SC) with support from several national organizations has introduced a new bill that pushes for a two-year delay in the rule. During this time, the term ‘fiduciary’ would be reevaluated and the current interpretation of a conflict of interest revisited.
Introduced January 6, 2017, the Protecting American Families’ Retirement Advice Act is currently before the House Ways and Means Committee. Will the new legislation gain traction in advance of the ruling’s April 10, 2017 deadline for applicability?
Apparently, there are mixed reactions in the advisor community. According to CNBC, some continue to oppose the ruling, while others feel that any consumer protection that’s in clients’ best interests is something the industry should embrace. Not only have the terms and wording of the current 1,000+ page ruling involved years of contentious debate and negotiation, many (if not most) financial services companies have already made preparations to comply with it.
According to the DOL, most of the consumer protections provided under the Rule and exemptions must begin by April 10, 2017. However, financial advisors will not have to provide the Best Interest Contract until January 1, 2018.
The Blue Vault Summit could not have been more perfectly timed. This gathering of the Broker Dealer and Sponsor communities provided insightful and open discussion from several vantage points. These conversations are paramount, especially in a time of significant regulatory change.