After news of the DOL decision to seek a delay broke, many advisors and industry watchdogs were unsure what it meant for the rule, which went into effect after years of comment and review.
“We don’t feel that anyone truly knows the outcome of the DOL rule and its subsequent impact on the industry,” said Anthony Stich, director of global marketing at Advicent, a fintech firm with a focus on compliance. “If firms are paying close enough attention, they will quickly take notice that the executive branch and the judiciary branch are both on different tracks with regard to the rule.”
The DOL, in deciding to seek a delay, referred to a Feb. 3 memorandum from President Donald Trump calling for a review of the fiduciary rule’s economic impact. After the proposal to delay the rule is reviewed, the DOL will enter a 45-day comment period regarding the president’s memorandum.
