Labor Department seeks 180-day delay of fiduciary rule: Reports

Agency also wants to open another round of public comment on the regulation, according to published reports.
FEB 10, 2017
The U.S. Department of Labor is seeking to delay its controversial fiduciary rule for 180 days and open the measure back up for public comment, according to published reports. Reuters reported Thursday night that the agency has filed paperwork related to the rule with the Office of Management and Budget. In one notice of proposed rulemaking, the DOL seeks to delay the rule's implementation date for 180 days pursuant to a comment period as short as 15 days. The current implementation date is April 10. In a second notice, the agency seeks to start another round of public comment on the rule, according to Reuters. The duration of that comment period is unclear. The fiduciary rule requires financial advisers to act in the best interests of their clients in retirement accounts. The DOL's move comes days after a Dallas federal judge upheld the rule, dealing a setback to financial industry attempts to kill the measure. In an 81-page ruling, Chief Judge Barbara M.G. Lynn of the Northern District of Texas granted summary judgment to the DOL. She shot down each of the major arguments submitted by the plaintiffs, a group of nine financial industry trade groups including the U.S. Chamber of Commerce, the Securities Industry and Financial Markets Association, the Financial Services Institute, the Financial Services Roundtable and the Insured Retirement Institute. On Feb. 3, President Donald J. Trump directed the DOL to review the rule to determine whether it harms investors or firms, and encouraged the agency to amend or rescind the measure if it does. The Labor Department under former President Barack Obama first proposed the rule in September 2010. Amid a flood of criticism from the financial services industry, that proposal was withdrawn a year later. In April 2015 it was reintroduced with significant modifications. It was made final on April 6, 2016. (Related read: The latest news and resources on the DOL fiduciary rule)

Latest News

What advisors need to know about SECURE 2.0’s impact on retirement income planning
What advisors need to know about SECURE 2.0’s impact on retirement income planning

Catch-up contributions, required minimum distributions, and 529 plans are just some of the areas the Biden-ratified legislation touches.

EToro to tokenize US stocks on Ethereum network for 24/7 trading
EToro to tokenize US stocks on Ethereum network for 24/7 trading

Following a similar move by Robinhood, the online investing platform said it will also offer 24/5 trading initially with a menu of 100 US-listed stocks and ETFs.

GTCR to acquire FMG Suite, expanding its wealth tech portfolio
GTCR to acquire FMG Suite, expanding its wealth tech portfolio

The private equity giant will support the advisor tech marketing firm in boosting its AI capabilities and scaling its enterprise relationships.

$29B Lido Advisors expands in Utah with Olympus Wealth Management
$29B Lido Advisors expands in Utah with Olympus Wealth Management

The privately backed RIA's newest partner firm brings $850 million in assets while giving it a new foothold in the Salt Lake City region.

Annuities hit new $223B high in H1 2025, LIMRA says
Annuities hit new $223B high in H1 2025, LIMRA says

The latest preliminary data show $117 billion in second-quarter sales, but hints of a slowdown are emerging.

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.