It's official: DOL fiduciary rule is dead

Acosta Declines to Extend Delay of DOL Fiduciary Rule

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Acosta Declines to Extend Delay of DOL Fiduciary Rule

Acosta Declines to Extend Delay of DOL Fiduciary Rule

Labor Secretary finds no legal basis to delay implementation; rule to become applicable June 9

By Mark Schoeff – InvestmentNews – May 23, 2017

 Labor Secretary Alexander Acosta confirmed Monday night that the agency’s fiduciary rule will become applicable on June 9.

 “We have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input,” Mr Acosta wrote in a Wall Street Journal op-ed that was posted Monday night. “Respect for the rule of law leads us to the conclusion that this date cannot be postponed.

 His decision is a victory for supporters of the rule, which requires financial advisers to act in the best interests of their clients in retirement accounts. The rule’s implementation has been delayed for 60 days — from April 10 until June 9 — while the DOL reassesses the regulation under a directive from President Donald J. Trump that could lead to its modification or repeal.

 The DOL said that two provisions — one expanding the definition of who is a fiduciary and another establishing impartial conduct standards — would become applicable when the delay ends on June 9.

 The agency said that it would continue its review until Jan. 1, the final implementation date for the rule.

 Industry opponents pushed Mr. Acosta to extend the delay, arguing that the whole rule should be put on hold while the agency carries out Mr. Trump’s order. Supporters threatened to sue the agency if it pushed back the rule beyond June 9 in violation of rule making parameters set out in the APA.

 In guidance Monday night, the agency said that it would not enforce the rule during the delay.

 “During the phased implementation period ending on January 1, 2018, the Department will not pursue claims against fiduciaries who are working diligently and in good faith to comply with the fiduciary duty rule and exemptions, or treat those fiduciaries as being in violation of the fiduciary duty rule and exemptions,” the Field Assistance Bulletin states.

 In addition to Mr. Acosta’s oped and bulletin, the agency released on a new set of frequently asked questions related to the transition period from June 9 to January 1, 2018.

http://www.investmentnews.com/article/20170522/FREE/170529979/acosta-declines-to-extend-delay-of-dol-fiduciary-rule

It's official: DOL fiduciary rule is dead

House committee approves Dodd-Frank replacement bill that includes repeal of DOL fiduciary rule

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House committee approves Dodd-Frank replacement bill that includes repeal of DOL fiduciary rule

The Financial CHOICE Act also makes substantial changes affecting many regulators, including the Securities and Exchange Commission

By Hazel Bradford – InvestmentNews – May 5, 2017

A replacement for much of the Dodd-Frank Wall Street Reform and Consumer Protection Act was passed by the House Financial Services Committee on Thursday.

The vote was 34-26 along party lines, and came after three days of considering amendments from Democrats opposing it. The full House could vote later this week.

The Financial CHOICE Act, whose chief sponsor is committee chairman Jeb Hensarling, R-Texas, would repeal the Department of Labor’s new fiduciary rule until 60 days after the Securities and Exchange Commission issues its own standard, which is not underway. The DOL fiduciary rule would have to be “substantially similar” to the SEC’s rule.

The bill also makes substantial changes at many financial regulators, including the SEC and the Financial Stability Oversight Council, which would no longer be able to designate non-bank firms as systemically important and would have to repeal previous designations.

The Volcker Rule, which prevents government-insured banks from engaging in riskier investment activity, also would be repealed.

Other changes at the SEC include more cost-benefit analysis requirements, increased penalties for civil and administrative actions, and creation of an enforcement ombudsman and enforcement advisory committee.

For shareholders, it changes the processes for submitting corporate proposals and voting for corporate board directors, and limits their use of proxy services. Ken Bertsch, Council of Institutional Investors executive director, testified at a committee hearing April 28 that the legislation “threatens fundamental shareholder protections.”

Amy Borrus, CII deputy director, said in an emailed statement that the act “would crush shareholder proposals, which for decades have been an effective channel for investors to communicate their views to boards and management, [and] would condemn the SEC to endless, redundant busywork. That would cripple its ability to deliver on its mission of protecting investors, policing markets and fostering capital formation.”

In a letter Monday to the committee, the U.S. Chamber of Commerce said the Financial CHOICE Act “is an essential first step toward unlocking our capital markets and facilitating the financing of economic growth and job creation.”

Rep. Bill Huizenga, R-Mich, who chairs the Subcommittee on Capital Markets, Securities and Investment, said another important reform was requiring an audit of the Federal Reserve, “so policymakers and everyday Americans have a more informed understanding of how the Fed is impacting our economy.”

http://www.investmentnews.com/article/20170504/FREE/170509954/house-committee-approves-dodd-frank-replacement-bill-that-includes