Fiduciary Rule Spared the Ax, Will Go Into Effect 2018

By:
Chris Gaetano
Published Date:
May 24, 2017
'Officially Retired Tiara Crown' by Steven Depolo - https://flic.kr/p/6DarTV. Licensed under CC BY 2.0 via Wikimedia Commons

An Obama-era labor regulation mandating that retirement investment advisers be bound by fiduciary versus suitability rules will go into effect 2018 despite previous hints from the administration that it would be cancelled, according to the Wall Street Journal. The Journal article was written by U.S. Secretary of Labor Alexander Acosta, who said that, despite a keen desire to delay the regulation or kill it entirely, there is no principled legal basis to change the June 9 roll out date.

"Respect for the rule of law leads us to the conclusion that this date cannot be postponed," he said in his column. 

This isn't to say that he is a fan of the regulation, which he said does not fit in with the president's deregulatory agenda, citing critics who say that it would "limit choice of investment advice, limit freedom of contract, and enforce these limits through new legal remedies that would likely be a boon to trial attorneys at the expense of investors." He said that the department will still collect public input on the rule, and did not rule out repealing it in the future, but noted that people frustrated with the pace should keep in mind that the public comment period is not bureaucratic red tape but something ensuring the agency does not act on whims and considers the views of all Americans. 

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