In a hearing to challenge DOL fiduciary rule, The U.S. Department of Labor (DOL) told a Minnesota federal judge that the agency is planning to delay three parts of the controversial retirement savings regulation for another 18 months. The plans for implementation of the DOL fiduciary rule have a date of July 2019.
The three parts of the rule said to be delayed until 2019 — the best interest contract exemption, the principal transactions exemption, and amendments to the prohibited transaction exemption 84-24 — would create new requirements for professionals to receive commissions and other performance-based pay. The delay comes only a month after the Labor Department sought public comments on when the rule’s provisions should go into effect and how they might be changed.
DOL Fiduciary Rule Causes Controversy
There has been much controversy about revisions to the DOL’s fiduciary rule. Worker and retiree groups like the Consumer Federation of America and the AARP have pushed for the rule to be implemented quickly, while financial firms and business groups like the Securities Industry and Financial Markets Association have asked for delays.
The DOL fiduciary rule started taking shape under President Barack Obama, and earlier this year, Alexander Acosta, President Donald Trump’s labor chief, said that implementation of the rule would continue.
As of publishing, the full details of the agency’s decision to delay have not yet been made public.
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