ABA: Proposed DOL Fiduciary Rule Violates Federal Banking Law Provision

ABA this week met with the White House’s Office of Management and Budget to discuss the Department of Labor’s pending fiduciary rule, which redefines who counts as a fiduciary under the Employee Retirement Income Security Act. ABA expressed concern about the DoL’s apparent failure to consult with the OCC throughout the rulemaking process, pointing out that at least one provision of the proposed rule violates the National Bank Act and OCC regulations, which generally prohibit the DoL from exercising regulatory authority to examine the books and records of a national bank or federal savings association.

ABA recommended that the DoL submit the fiduciary rule to the OCC for review, analysis and discussion in order to identify the parts of the rule that may conflict with existing OCC regulations and policies, and amend the rule’s language to correct any conflicts, inconsistencies or incompatibilities with current laws and regulations.

Since the rule applies to all banks, ABA further recommended that the rule be shared with and reviewed by the FDIC and Federal Reserve to provide them with the opportunity to ensure the rule’s consistency with their respective regulations and policies. For more information, contact ABA’s Tim Keehan.