The Department of Labor has unveiled a final rule postponing the applicability deadline of its “fiduciary rule” for 60 days. On Friday, DoL will publish in the Federal Register a rule extending the deadline from April 10 to June 9.
The rule, which expanded the definition of “fiduciary” under the Employee Retirement Income Security Act and the Internal Revenue Code, was the target of a recent executive action by President Trump, who directed the secretary of labor to thoroughly review the rule’s effect on Americans’ ability to access financial services. The delay will provide the DoL additional time to determine the rule’s full impact on consumers, and, if necessary, issue a new proposal for revising or rescinding the rule.
ABA strongly advocated for an even longer implementation period to allow banks of all sizes time to comply. ABA has also urged DoL to revisit the economic and legal analysis undergirding the rule, noting that it remains fundamentally flawed.