President Trump Issues Memorandum Directing DOL to Review Fiduciary Investment Advice Regulation | Practical Law

President Trump Issues Memorandum Directing DOL to Review Fiduciary Investment Advice Regulation | Practical Law

On February 3, 2017, President Trump issued a memorandum that directs the Department of Labor (DOL) to review the fiduciary investment advice regulation issued by the DOL on April 8, 2016 (fiduciary rule) and currently scheduled to become effective on April 10, 2017. The memorandum directs the DOL to examine the fiduciary rule and determine if it negatively impacts investors and retirees or is otherwise inconsistent with the priorities of the Trump administration.

President Trump Issues Memorandum Directing DOL to Review Fiduciary Investment Advice Regulation

by Practical Law Employee Benefits & Executive Compensation
Law stated as of 06 Feb 2017 • USA (National/Federal)
On February 3, 2017, President Trump issued a memorandum that directs the Department of Labor (DOL) to review the fiduciary investment advice regulation issued by the DOL on April 8, 2016 (fiduciary rule) and currently scheduled to become effective on April 10, 2017. The memorandum directs the DOL to examine the fiduciary rule and determine if it negatively impacts investors and retirees or is otherwise inconsistent with the priorities of the Trump administration.
On February 3, 2017, President Trump issued a memorandum that directs the Department of Labor (DOL) to review the fiduciary investment advice regulation issued by the DOL on April 8, 2016 (fiduciary rule) and currently scheduled to become effective on April 10, 2017. The memorandum provides that the fiduciary rule may not "be consistent" with the priorities of President Trump's administration. It directs the DOL to:
  • Examine the fiduciary rule to determine whether it may adversely affect the ability of Americans to gain access to retirement information and financial advice.
  • Prepare an updated economic and legal analysis concerning the likely impact of the fiduciary rule, which must consider, among other things, if:
    • the anticipated applicability of the fiduciary rule has harmed or is likely to harm investors due to a reduction of Americans' access to certain retirement savings, products, information or related financial advice;
    • the anticipated applicability of the fiduciary rule has resulted in dislocations or disruptions within the retirement services industry that may adversely affect investors or retirees; and
    • the fiduciary rule is likely to cause an increase in litigation and prices paid by retirees and investors to gain access to retirement services.
The memorandum provides further that if the DOL determines that the fiduciary rule results in any of the above, or concludes for any other reason that the fiduciary rule is inconsistent with the Administration's priorities, it must publish a new proposed rule that rescinds or revokes the fiduciary rule.
While the memorandum does not on its face delay the fiduciary rule, it lays the groundwork for the DOL to delay, rescind, or revise the rule before the currently scheduled April 10, 2017 implementation date.