Acosta declines to extend delay of DOL fiduciary rule

Labor Secretary finds no legal basis to delay implementation; rule to become applicable June 9
MAY 22, 2017

Labor Secretary Alexander Acosta confirmed Monday night that the agency's fiduciary rule will become applicable on June 9. "We have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input," Mr Acosta wrote in a Wall Street Journal oped that was posted Monday night. "Respect for the rule of law leads us to the conclusion that this date cannot be postponed. His decision is a victory for supporters of the rule, which requires financial advisers to act in the best interests of their clients in retirement accounts. The rule's implementation has been delayed for 60 days — from April 10 until June 9 — while the DOL reassesses the regulation under a directive from President Donald J. Trump that could lead to its modification or repeal. The DOL said that two provisions — one expanding the definition of who is a fiduciary and another establishing impartial conduct standards — would become applicable when the delay ends on June 9. The agency said that it would continue its review until Jan. 1, the final implementation date for the rule. Industry opponents pushed Mr. Acosta to extend the delay, arguing that the whole rule should be put on hold while the agency carries out Mr. Trump's order. Supporters threatened to sue the agency if it pushed back the rule beyond June 9 in violation of rule making parameters set out in the APA. In guidance Monday night, the agency said that it would not enforce the rule during the delay. "During the phased implementation period ending on January 1, 2018, the Department will not pursue claims against fiduciaries who are working diligently and in good faith to comply with the fiduciary duty rule and exemptions, or treat those fiduciaries as being in violation of the fiduciary duty rule and exemptions," the Field Assistance Bulletin states. In addition to Mr. Acosta's oped and bulletin, the agency released on a new set of frequently asked questions related to the transition period from June 9 to January 1, 2018.

Latest News

Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading
Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading

"This shouldn’t be hard to ban, but neither party will do it. So offensive to the people they serve," RIA titan Peter Mallouk said in a post that referenced Nancy Pelosi's reported stock gains.

Raymond James hauls Ameriprise advisors managing $1.1B in New York
Raymond James hauls Ameriprise advisors managing $1.1B in New York

Elsewhere, Sanctuary Wealth recently attracted a $225 million team from Edward Jones in Colorado.

Cetera debuts new alts allocation portfolios for accredited investors
Cetera debuts new alts allocation portfolios for accredited investors

The giant hybrid RIA is elevating its appeal to advisors with a curated suite of alternative investment models, offering exposure to private equity, private credit, and real estate.

Steward Partners expands in California with $1.1 billion RIA acquisition
Steward Partners expands in California with $1.1 billion RIA acquisition

The $40 billion RIA firm's latest West Coast deal brings a veteran with over 25 years of experience to its legacy division for succession-focused advisors.

Invictus managers withhold $10M, trigger ERISA asset showdown
Invictus managers withhold $10M, trigger ERISA asset showdown

Invictus fund managers allegedly kept $10 million in plan assets after removal, setting off a legal fight that raises red flags for wealth firms.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.