WASHINGTON–In a move welcomed by credit unions, the Department of Labor (DOL) is expected to delay implementation of its fiduciary rule that requires, among other things, that investment advisors act in the best interests of their clients.
Last week the DoL sent notice to the Office of Management and Budget in response to an executive order from the Trump administration. The proposal has not been published yet, but will likely delay the implementation of the rule for 180 days after the original effective date of April 10.
“The DOL’s delay for implementing the fiduciary rule will provide opportunities for additional analysis about whether there are any unintended consequences resulting in a reduction of Americans' access to certain retirement savings offerings, retirement product structures, retirement savings information, or related financial advice,” said CUNA Chief Advocacy Officer Ryan Donovan, in a statement. “This will be beneficial to credit union members and consumers. It will also give certain credit unions and CUSOs an opportunity to seek additional compliance clarifications to ensure they can continue to help members save and plan for the future.”
The rule defines who is a “fiduciary” of an employee benefit plan, adding brokers and advisers providing advice to individual retirement accounts. It was finalized in April 2016.