Public Comments for Fiduciary Rule Delay Being Sent to DOL
Companies and organizations are weighing in on the potential delay of the Department of Labor’s fiduciary rule through public comment letters. The DOL will look over the public comments before making a decision to delay the rule’s second phase for 18-months from January 1, 2018 to July 1, 2019.
Most letters are of course, in support of the proposed delay. The National Association of Fixed Annuities said it strongly supports the delay, stating it’ll give the DOL time to consider possible changes to the rule and to protect those affected by the rule from wasting resources on compliance protocols that may be revised or repealed.
Vanguard also said it supports the delay. Vanguard said in its letter, “the proposed delay should help allow financial institutions a realistic time frame to evaluate investment services in accordance with the BIC Exemption, and, if necessary, to implement and test systems and procedures to comply with the BIC Exemption...”
At least one group is against the proposed delay. A company called Financial Engines said in their comment letter that a delay “would inject additional uncertainty into the market, which could result in the imposition of costs on the industry and investors” and “many in the industry have already taken significant steps towards compliance.”