Legal Newsline discusses the delayed implementation of the fiduciary rule with John Berlau.
The U.S. Department of Labor is looking to push back the full implementation of its controversial fiduciary rule, otherwise referred to as the conflicts of interest rule, according to a recent federal court filing.
John Berlau, a policy expert at the Competitive Enterprise Institute, also praised the move. Berlau has been a critic of the DOL’s rule from the start.
“Today, the Labor Department came to the common-sense conclusion that the compliance date of a costly part of the fiduciary rule should be delayed while the rule is under the review ordered by President Trump,” he said Wednesday. “This is a positive development that may reduce some of the harm the regulation is already causing in reducing middle class savers' options for their IRAs and 401(k)s.
“But to provide real certainty for savers and the professionals who serve them, the rule must be repealed by Congress or withdrawn by the agency. The Obama Labor Department should not have pushed through this rule in the first place, as the power to regulate investments was arguably vested by Congress, not in the Labor Department, but in the Securities and Exchange Commission.
“Hopefully, the courts, Congress, and/or Secretary of Labor Alex Acosta will restore the rule of law and ensure informed investor choice in the retirement market.”
Read the full article at Legal Newsline.