The chairman of the House Committee on Rules sent President Donald J. Trump a letter today urging him to delay the Department of Labor fiduciary rule.
As the April 10 compliance date draws near rule opponents are eager for news that the Trump administration will follow through on promises to at least delay the rule. Permanently killing the rule will be a much longer process, but Trump can order a delay with the stroke of a pen.
Rep. Pete Sessions, R-Texas, drove the point home in his letter to Trump.
“It is critical that your administration announce a delay as soon as possible as impacted stakeholders are continuing to accrue significant costs in efforts to comply … and struggling to manage increasing client uncertainty and confusion,” the letter reads.
In particular, Sessions urged Trump’s administration “to work with all stakeholders, including the annuity industry and those who sell fixed indexed and variable products, to make certain that retirement savers have a broad choice in investments.”
The fiduciary rule, which raises advice standards for anyone working with retirement funds, was published in April 2016. Supporters say it will eliminate conflicts of interest that cost retirement savers billions. The industry claims it will restrict choice and cause advisors to flee the profession.
The House Education and Workforce and House Financial Services committees stand ready to work on overhauling the DOL rule, Sessions reminded the president. But the first step is a delay.
While Trump has not spoken on the fiduciary rule, a top advisor assured the industry he would stop it. However, in two weeks since his inauguration, Trump has yet to address the DOL rule.
His choice for labor secretary, fast food CEO Andrew Puzder, has yet to be confirmed by the Senate, which might explain the delay.
InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at firstname.lastname@example.org.
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