The Labor Department plans to issue in September 2019 a revised final fiduciary rule package to replace the one vacated this spring by the U.S. Court of Appeals for the 5th Circuit, according to Labor’s fall regulatory agenda.
That’s likely one reason why the Securities and Exchange Commission’s final advice standards package “is taking longer than many expected,” Steve Saxon, principal at Groom Law Group, told ThinkAdvisor on Thursday.
The reg agenda states that Labor in 1975 issued a regulation defining who is “fiduciary” under section 3(21)(A)(ii) of the Employee Retirement Income Security Act (ERISA) as a result of giving investment advice for a fee or other compensation.
On April 8, 2016, Labor replaced the 1975 regulation with a new regulatory definition under its fiduciary rule, which was vacated “in toto in Chamber of Commerce v. Department of Labor.”
“The department is considering regulatory options in light of the 5th Circuit opinion,” the reg agenda states.