The higher cost estimate came as DoL incorporated industry estimates of compliance costs. The agency had downplayed industry estimates in its proposed rule. The costs appear likely to affect a “substantial number of small entities,” according to DoL’s regulatory impact analysis.
AAF researchers said:
This rule is clearly one of the most burdensome rules in recent years, and likely one of the most expensive DoL regulation[s] ever. Despite some apparent exemptions and carve-outs, DoL still sees these costs increasing dramatically over the proposed version due to a fuller understanding of the data available. These costs will have significant implications for financial firms and consumer[s] in the future.Read more.