DOL fiduciary rule is all but gone

Focus switches to SEC standards of conduct for broker-dealers and investment advisors

Jon VoglerTime to read: 4 min

I’ve been writing about the Department of Labor (DOL) fiduciary rule for several years, but I may soon need to write the obituary.

In the most recent edition of Washington Insights, we discussed the latest — and likely final — chapter in the DOL fiduciary rule saga. On March 15, a three-judge panel of the Fifth Circuit Court of Appeals voted to vacate (or nullify) the rule. The DOL had until April 30 to appeal the verdict to either the same three-judge panel or to the full Fifth Circuit. But that deadline has passed, meaning that the rule should be officially vacated soon (unless a third party successfully intervenes in place of the DOL to defend the rule).

The AARP and

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Delay of DOL fiduciary rule may be challenged in court

Part of Invesco’s Legislative Insights Series

Jon VoglerTime to read: 3 min

Consumer advocacy organizations have indicated they may sue the Department of Labor (DOL) to prevent it from delaying the Jan. 1, 2018, applicability date of its fiduciary (conflict of interest) rule.

In August, the DOL proposed a delay of several key provisions of the rule to July 1, 2019. The proposal was then opened to a 15-day period of public comment, which closed Sept. 15. I’ve heard speculation that the DOL may issue the extension in early November. To do so, the DOL must adequately justify the necessity of a delay under the Administrative Procedures Act (APA).

Opponents of the delay have claimed

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DOL proposes 18-month delay of the fiduciary rule

Part of Invesco’s Legislative Insights Series

Jon VoglerOn Aug. 9, the Department of Labor (DOL) submitted a proposal to the Office of Management and Budget (OMB) to delay the Jan. 1, 2018, applicability date of several provisions of the fiduciary rule to July 1, 2019. This proposal signals that the DOL is considering major changes to the rule and the prohibited transaction exemptions proposed with it.

Assuming the delay goes into effect, it would have the net result of extending the rule’s transition period, in which the definition of “fiduciary” is broadened and fiduciaries are required to meet the impartial conduct standards: He or she (a) must act in the best interest of the client, (b) may receive only reasonable compensation and (c) must not make any materially misleading statements.

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