Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Regulation and Compliance > State Regulation

New DOL Fiduciary Rule Coming Next Fall

Your article was successfully shared with the contacts you provided.

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.

The SEC announced in its fall 2018 reg agenda that the agency’s final advice standards package for advisors and brokers is coming next Spetember. “The SEC is taking its time to evaluate the comments it received on Regulation BI and Form CRS,” Saxon said.

“This and the turnover in commissioners suggest that it is likely that we will see areas where the final rules are not identical to the proposed rules.”

Added Saxon: “With both DOL and the SEC working on investor protection rules (and with both agencies targeting the same deadline), this hints that the two agencies may be working together to develop coordinated rules to protect American savers.”

— Related on ThinkAdvisor:


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.