Interesting Angles on the DOL’s Fiduciary Rule #35


Posted on February 8, 2017, by Fred Reish in DOL Activity, fiduciary. Comments Off on Interesting Angles on the DOL’s Fiduciary Rule #35

Presidential Memorandum on Fiduciary Rule

Last Friday, the White House directed a memorandum to the DOL to review the fiduciary regulation and the related exemptions (the “fiduciary rules”).

This article discusses what the memo did and did not do, and what the next steps are.

As a legal matter, the memo was more “show” than “go,” in the sense that it did not delay, withdraw or modify the fiduciary rules. Instead, it directed the DOL to evaluate the rules and to determine if they should become applicable, be modified or be withdrawn.

Shortly after the memo was signed, the Acting Secretary of Labor said that the Department would look into possible legal actions to delay the application of the rule. While that clearly indicates a desire to delay the applicability date beyond April 10th, it also suggests that the DOL has not decided if there is a legal maneuver that could accomplish that result. On the other hand, it could just be government-speak indicating that a delaying action will be coming in the next few days. Either way, I’m a little surprised that the action wasn’t taken immediately.

If it is delayed, that leaves us with the questions of (1) what rules apply now, and (2) will the rules be withdrawn or modified (and, if modified, how)?

The answer to the first question is easy . . . the “old” fiduciary rules are in effect until something is done. The second question is not easily answered. There is a split of opinion about whether the DOL will kill or modify the rules. At this point, we need to wait and see.

The views expressed in this article are the views of Fred Reish, and do not necessarily reflect the views of Drinker Biddle & Reath.

 

Share






Recent Insights

Best Interest and Best Practices #13

Best Practices: Why Wait Until After You are Sued?

This is the 13th of a new series of articles titled “The Bests.” The series...

Best Interest and Best Practices #12

What Does Best Interest Mean . . . In the Real World? (Part 4)

This is the 12th of a new series of articles titled...

Best Interest and Best Practices #11

What Does Best Interest Mean . . . In the Real World? (Part 3)

This is the 11th of a new series of articles titled...