Fiduciary rule could be delayed at a moment's notice
- Brad Campbell, counsel in Drinker Biddle & Reath LLP’s employee benefits and executive compensation practice group, told Employee Benefit News that the Department of Labor’s fiduciary rule could be delayed at any time under a Donald Trump presidency. April 10 is the implementation date.
- Campbell said an announcement of the delay is rumored to come down soon and that the first step in blocking the rule could be a six-month delay. The second step is deciding whether to reform or repeal the rule.
- Campbell added that Trump officials have expressed opposition to the rule, although his nominee to head the labor department, Andrew Puzder, hasn’t so far. Trump has yet to nominate someone to head the Employee Benefit Security Administration.
Campbell correctly advises brokers and insurance agents to submit the required transition documents to meet the April 10 deadline, regardless of the rule’s possible delay or repeal.
It's uncertain what will happen to the fiduciary rule and other pro-labor initiatives under the Trump administration and Republican-led House and Senate. Robo-advisers and other innovations have emerged in the retirement savings field, partly in response to the rule but partly because the industry was finally catching up, tech-wise. That innovation is likely to continue, regardless of whether the rule is implemented.