Despite massive efforts to stop it, the Department of Labor’s fiduciary rule will go into effect June 9. When you read the report from Reuters below, please note that the “concerns it may make investment advice too costly” reference should be read as follows: “concerns that the diversion of fees, often undisclosed, made possible by conflicts of interest, also undisclosed, will have to stop, returning to the customers the money that should have been theirs in the first place.”
The U.S. Labor Department will implement its fiduciary rule on June 9 with no further delays, U.S. Labor Secretary Alexander Acosta said on Tuesday.
The department’s rule, which requires brokers offering retirement investment advice to act in the best interest of their customers, has been heavily criticized by Republicans and Wall Street amid concerns it may make investment advice too costly.The rule has faced a rocky time becoming effective, with President Trump last month delaying its enactment date, originally April 10, for 60 days. Trump has also ordered a review of the rule.
Acosta, in an opinion piece for the Wall Street Journal, which was also shared with Reuters, said there was “no principled legal basis to change the June 9 date while we seek public input”.
Calling the fiduciary rule a “controversial regulation”, Acosta said while courts have upheld the rule as consistent with Congress’ delegated authority, it may not align with Trump’s “deregulatory goals”.
He also said the department was seeking “public comment” on how to revise the rule, leaving open a possibility of repealing the rule in future.