DOL to Roll Out Reincarnated Fiduciary Rule in December
The Department of Labor plans to reintroduce a new version of a fiduciary rule in December, the agency says.
The Labor Department intends to put out a request for information on July 6 and keep it open until Aug. 8, with a notice of proposed rulemaking scheduled for an unspecified date in December, according to the agency’s spring regulatory agenda.
The original Obama-era rule, which purported to require retirement account advisors to put clients’ interests first, was vacated by in the U.S. Court of Appeals for the Fifth Circuit last spring.
“The Department is considering regulatory options in light of the Fifth Circuit opinion,” the agency says.
Three weeks ago, speaking at a hearing of the House of Representatives House Education and Labor Committee, Labor Secretary Alexander Acosta revealed that the agency was working with the SEC to issue a new rule, as reported.
The SEC is working on its own version of regulations on broker and investment advisor conduct, Regulation Best Interest, which experts have said could come out within the next four months.
Acosta indicated that the DOL’s new rule would align with the SEC’s. The SEC’s proposal has met with far less contention from the industry than the erstwhile DOL rule.