The Department of Labor intends to revisit the fiduciary rule after an earlier version was challenged in court, according to a semi-annual regulatory agenda published Wednesday.
The agenda, published by the Office of Management and Budget's Office of Information and Regulatory Affairs for all federal agencies, projects a December release date for advanced notice of proposed rule-making, the first step in issuing new rules.
DOL issued a revised fiduciary rule in April 2016 to replace one from 1975, but it was vacated by the 5th U.S. Circuit Court of Appeals in New Orleans in March 2018, on the grounds that it represented regulatory overreach. "The department is considering regulatory options in light of the 5th Circuit opinion," the OMB notice said.
Labor Secretary Alexander Acosta previewed the new rule-making during a House Education and Labor Committee hearing May 2, saying that the DOL is working with the Securities and Exchange Commission as the SEC completes a related best-interest standard. "Based on our collaborative work we will be issuing new rules in this area," Mr. Acosta said.
Other items on the agenda for DOL's Employee Benefit Security Administration include issuing rules in December implementing a White House executive order to reduce the cost and complexity of retirement plan disclosures, amendments to the Voluntary Fiduciary Correction Program by April 2020, and finalizing criteria for qualified employers to set up and run multiple employer retirement savings plans in June.
