What’s really going on with the DOL Ruling?

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There’s been much speculation since Trump took over the White House about the survival of the Department of Labor’s Fiduciary Rule. Attention on the matter recently peaked with various reports indicating the issue of a presidential memorandum with instruction to postpone the applicability date of all provisions that were not yet effective. These reports are not correct - the final memorandum does not include this reference and does not delay the ruling.

What the final memorandum actually says is that the Conflict of Interest Rule, “may significantly alter the manner in which Americans can receive financial advice, and may not be consistent with the policies of my Administration.”[1] Further, the memo directed the Department of Labor to “examine the Fiduciary Duty Rule to determine whether it may adversely affect the ability of Americans to gain access to retirement information and financial advice.”[2] Specifically, the memorandum instructs the DOL to evaluate whether or not the ruling:

  • Harms investors due to a reduction of Americans' access to certain retirement savings offerings, retirement product structures, retirement savings information, or related financial advice
  • Results in dislocations or disruptions within the retirement services industry that may adversely affect investors or retirees
  • Causes an increase in litigation, and an increase in the prices that investors and retirees must pay to gain access to retirement service

Any decisions to rescind or revise the Rule are left to the DOL and would be subject to a notice and comment period. Full compliance with the Fiduciary Rule and the related exemptions are scheduled to be effective on April 10th.

Find out how Vestmark can help you maintain DOL Fiduciary Rule compliance

[1] https://www.whitehouse.gov/the-press-office/2017/02/03/presidential-memorandum-fiduciary-duty-rule

[2] https://www.whitehouse.gov/the...


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