DOL defends fiduciary rule, minus class action waivers
- Trump's U.S. Labor Dept. is defending the Obama administration's fiduciary rule in court, with one major exception, reports BenefitsPro. Business groups have argued that a provision in the rules restricting class-action waivers violates federal law. Previously, DOL had defended the provision. Now, it has reversed course.
- The regulation, issued during the Obama administration, sets new conduct standards for individuals who give retirement savings advice and is set to take effect in stages.
- President Trump’s new secretary of labor, Alexander Acosta, allowed the conduct requirements to take effect June 9. Still pending are additional standards, which are scheduled to take effect Jan. 1, 2018. DOL has asked stakeholders to weigh in on potential changes to the rule, however.
Despite this development, DOL's final position on the fiduciary rule is far from clear. At the same time it is defending the rule in court, the administration also has suggested that the whole thing needs a major overhaul.
In its Request for Information, the department not only asks whether the impending deadline should be delayed but also asks whether some of the provisions already adopted should be scrapped or revised.
Interested parties who wish to comment can do so via the Federal Register's website. DOL will accept submissions until Aug. 7.