The U.S. Department of Labor today proposed a delay in the implementation of its fiduciary rule until June 9.
The fiduciary rule requires retirement brokers and advisors to disclose to clients whether they receive a commission for recommending certain products and put clients’ interests before their own in endorsing investments for individual retirement accounts. The DOL issued the final rule in April 2016 and it was slated to become effective on April 10. But President Donald Trump issued a memorandum to the DOL Feb. 3 asking it to review whether the rule would negatively impact citizens’ access to retirement and financial advice.
“One of the priorities of my administration is to empower Americans to make their own financial decisions, to facilitate their ability to save for retirement and build the individual wealth necessary to afford typical lifetime expenses, such as buying a home and paying for college, and to withstand unexpected financial emergencies,” Trump said in his memorandum. “The Department of Labor’s final rule … may significantly alter the manner in which Americans can receive financial advice, and may not be consistent with the policies of my administration.”
The DOL will take public comments on the proposed delay of implementation for 15 days beginning tomorrow, and comments on the issues raised in the memorandum for 45 days.