OMB concludes review of measure delaying DOL fiduciary rule

Agency designates delay as 'economically significant,' after meetings with DOL-fiduciary proponents

Feb 28, 2017 @ 10:00 am

By Mark Schoeff Jr.

The Office of Management and Budget concluded its review of a rule that would delay the implementation of the Department of Labor's fiduciary rule.

In a posting on its website on Tuesday morning, the OMB also noted that it has changed the designation of the delay to "economically significant," a more rigorous category than the previous not econonomically significant label that it carried when the delay was submitted to OMB by the DOL.

The change in the economic-impact of the delay's status occurred after several proponents of the DOL fiduciary met with OMB officials over the last two weeks.

The higher designation could mean that the delay rule would require a longer comment period.

The DOL has not yet determined when it will release the delay rule. It is expected to carry at least a two-week comment period.

The DOL fiduciary rule, which would require all financial advisers to act in the best interests of their clients, has an initial implementation date of April 10. The DOL is seeking a delay, which could be for 180 days, after President Donald Trump instructed the agency to reassess the rule and modify or replace it if it is determined to cause harm to investors or firms.

The finanical industry argues that the rule is too complex and costly and will price investors with modest assets out of the advice market. Backers of the rule say that it is required to protect workers and retirees from conflicted advice that results in the purchase of inappropriate high-fee investments that erode savings.


What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video


Top questions surrounding future of DOL fiduciary rule

Reporter Greg Iacurci and managing editor Christina Nelson discuss the biggest uncertainties springing from the Fifth Circuit Court of Appeals' decision to vacate the regulation.

Latest news & opinion

Stocks plunge, advisers tell clients to hang tight

Though planners encourage calm, some are preparing investors for a correction.

Lightyear Capital's Donald Marron said to be in the hunt for Cetera Financial Group

The veteran brokerage executive, who bought Advisor Group in 2016, owned Cetera once before.

Social Security benefits losing buying power

Low inflation combined with rising Medicare costs threaten the adequacy of seniors' income.

Finra looks to streamline broker-dealer exams

CEO Robert Cook says three examination teams may be consolidated.

The 401(k) robo-revolution is here

Could human advisers be displaced as digital-advice firms use technology to deliver services to plan sponsors and participants?


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print