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REGULATION/LEGISLATION

DOL proposes 60-day delay to fiduciary rule

The Department of Labor wants to extend the applicability date of its fiduciary rule by 60 days, it announced Wednesday.

The delay would push the effective date to June 9 from April 10.

Public comments on the proposed extension will be accepted for 15 days once the proposal is published in the Federal Register.

The Department of Labor will also take public comments for 45 days on President Donald Trump's Feb. 3 memorandum directing it to examine the fiduciary rule to determine whether it may adversely affect the ability of Americans to gain access to retirement information and financial advice. “The proposed extension is intended to give the department time to collect and consider information related to the issues raised in the memorandum before the rule and exemptions become applicable,” the DOL said in a statement.

Kenneth E. Bentsen Jr., president and CEO of the Securities Industry and Financial Markets Association, said the 60-day delay will give firms more time to prepare. “Delaying the rule is imperative to avoid further client confusion and market disruption,” he said in a statement.

Once the proposal is published, it will also be on the Employee Benefits Security Administration's website.