DOL Proposes to Delay Implementation of the Fiduciary Rule by 60 Days
On March 1, 2017, the Department of Labor (DOL) announced a proposal to delay the "applicability date" of the fiduciary rule by 60 days (See Federal Register notice (March 2, 2017)). Under the delay proposal, the fiduciary rule's applicability date would change from April 10, 2017, to June 9, 2017. DOL has solicited comments on the delay proposal during a brief, 15-day comment period. The proposed delay is in response to the president's February 3, 2017, directive to DOL to evaluate the fiduciary rule and, in general, determine whether to revise or rescind the rule. We note that the proposed 60-day delay leaves DOL with relatively little time to perform its analysis and think it likely that a further delay will be proposed. It is presently unknown what DOL will propose in respect of the future of the fiduciary rule after it completes its analysis. Although it is possible that DOL will ultimately decide to let the fiduciary rule go into effect in its current form, it appears more likely that the rule will be revised if not repealed in its entirety.