Fred Reish Addresses Delayed DOL Fiduciary Rule With Financial Advisor

In “Is DOL Delaying New Fiduciary Rule Pending DOL Secretary Confirmation?” Financial Advisor spoke to benefits and executive compensation partner Fred Reish about the Department of Labor (DOL) backing off its appeal of its fiduciary rule in federal court.

Reish said, “I suspect that the DOL has drafted the proposal and is sitting on it.” He added, “The rumor is that the department doesn’t want to send the proposal to the Office of Management and Budget until the administration’s nominee for secretary of labor is confirmed by the Senate.”

“The concern is that one or more senators could be opposed to some of the provisions in the proposal, and that could complicate the confirmation process,” Reish noted. “But for that political consideration, I believe that the proposal could go to the OMB [the Office of Management and Budget] in a matter of a few weeks.”

Further, Reish stated, “Their annual retrospective reviews and reports are due to the DOL by June 30 for calendar year 2022. The broker-dealers and investment advisory firms are, for the most part, continuing work on those reports,” he explained.

“Both Regulation Best Interest and the Securities and Exchange Commission’s (SEC) ‘Interpretation for Investment Advisers,’ as well as SEC staff bulletins issued last year and this year, have similar — but not identical — requirements for rollover recommendations. So, compliance with many of the DOL’s requirements is also needed to comply with SEC rules,” Reish concluded.