The Department of Labor previewed its 60-day delay of the controversial fiduciary rule today.
The delay rule was released by the Federal Register late Tuesday. It becomes effective upon publication and delays the fiduciary rule applicability date from April 10 to June 9.
As part of the delay documents, the DOL said it received about 193,000 comment and petition letters “expressing a wide range of views on whether the Department should grant a delay and the duration of any delay.”
About 15,000 commenters and petitioners support a delay of 60 days or longer, with some requesting at least 180 days and some up to 240 days or a year or longer (including an indefinite delay or repeal), the department said.
“By contrast, 178,000 commenters and petitioners oppose any delay whatsoever,” the DOL said. “The Department continues to receive a very high volume of comment and petition letters on a daily basis, both on the delay and on the more general questions that the Department set forth.”
The bulk of "comments" opposing the delay were actually signatures on a petition submitted by CREDO Action, a liberal activist group, which collected more than 119,000 signatures. The 15-day comment period closed March 17.
President Donald J. Trump ordered the DOL to delay the rule in a Feb. 3 memorandum. In the meantime, the DOL released a bulletin alerting the financial services industry that it will not pursue enforcement of the rule in the short term.
Many industry analysts say the DOL will use the 60-day delay to undo many of the fiduciary rule measures, or implement another delay.
The fiduciary rule establishes a best interest standard of care for anyone working with retirement funds. It requires advisors and firms to make substantial disclosures or face class-action liability.
InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]
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