The Office of Management and Budget approved on Monday the 18-month delay for the more onerous provisions of the Labor Department’s fiduciary rule.
The OMB approval, which usually takes 90 days, took less than a month.
The office listed its action as “Consistent with Change,” which means OMB “had to make some changes as a result of the review, but not with the length of the extension because the title is the same,” says Fred Reish, partner in Drinker Biddle & Reath’s employee benefits and executive compensation practice group in Los Angeles. OMB likely had to “make changes to the economic analysis and maybe the length of the comment period.”
The delay must now be finalized by Labor.
Steve Saxon, partner at Groom Law Group, said that with the OMB review finalized, Labor will now release a proposed rule in the Federal Register with a comment period of no longer than 30 days.
“We do expect the delay to go through,” Saxon told ThinkAdvisor on Tuesday. “We think [Labor is] going to propose the extension and do a very short comment period and then approve it.”