Industry trade groups are urging the newly appointed Labor Secretary Alexander Acosta to further delay the Department’s fiduciary rule which seeks to eliminate conflicts of interest as it pertains to retirement investment advice. The implementation date of the regulation was recently delayed from April 10th to June 9th.
“We strongly urge Secretary Acosta to take immediate action to further delay implementation of the Fiduciary Duty Rule by a minimum of 180 days beyond the current June 9, 2017 applicability date,” said Kenneth Bentsen Jr., president and CEO of the Securities Industry and Financial Markets Association. “The DOL’s fiduciary rule will adversely affect the ability of millions of Americans to save for retirement, increase the costs of retirement accounts while limiting access to advice and products, and vastly increase the amount of litigation.”
He added, “As required by President Trump’s February 3, 2017 memorandum, the DOL needs to prepare an updated economic and legal analysis concerning the likely impact of the fiduciary rule. This review will take time and Secretary Acosta should immediately delay the June 9th implementation date while the required review is ongoing.”
Financial Services Institute president and CEO Dale Brown released a similar statement following Acosta’s Thursday confirmation by the Senate in a 60-38 vote.
“We urge Secretary Acosta to make addressing the fiduciary rule a top priority. With the June 9 deadline looming, there is no time to waste in protecting retirement savers’ access to quality, affordable advice and services.”
The Financial Services Roundtable also called on Acosta to defer the June 9 applicability date until a thorough review has been completed, stating that a deferral “would allow the Department and the Secretary an opportunity to more properly and fully examine the rules consequences in accordance with the Presidential Memorandum.”
The Financial Services Institute is a trade group that represents independent financial advisors and independent financial services firms; SIFMA represents broker-dealers, banks, and asset managers; and the Financial Services Roundtable represents U.S. banking, insurance, asset management, finance and credit card companies.