Leading investment firms and retirement plan service providers
have submitted comment letters to the Department of Labor (DOL) on the proposed 60-day delay of the April 10 implementation of the new fiduciary rule.
With some variation among them, the comment letters broadly support President Trump’s February 3 memorandum to the DOL, which asked the agency to conduct further analysis and consider alternatives to implementing the controversial rulemaking.
Neuberger Berman, Empower Retirement and Great-West are
all in the camp supporting a delay of 60 days or longer. All three firms say this delay is important, particularly in light of President Trump’s asking the DOL to determine once again whether
the rule would adversely affect the ability of Americans to receive investment
Great-West goes a step further by pointing out that President
Trump has asked the DOL to complete its analysis of the fiduciary rule by the
time the 60-day delay expires, i.e. June 9, 2017. But this may not be enough time, so Great-West is asking the DOL
to delay for an additional 180
days and “to extend the transition period for a commensurate number of days.”
Great-West points out that “in addition to the 15-day comment
period on the proposed 60-day delay, the department has requested comments on
the issues raised by the presidential memorandum, and this 45-day comment
period will not close until six days after the fiduciary rule’s current
Empower also notes that the DOL might not complete its
analysis of the fiduciary rule by June 9. “Therefore, we would respectfully request
the department to fully delay the applicability date until the work is
complete,” writes Empower President Edmund Murphy.
Trade associations also echo these sentiments, including the
Insured Retirement Institute (IRI) and the National Association of Insurance
and Financial Advisors.
NEXT: Advice providers' take