The Department of Labor is proposing to extend the applicability deadline of the fiduciary rule for 60 days, until June 9, according to a notice published in the Federal Register. The rule was originally scheduled to take effect on April 10. Comments on the extension proposal are due in 15 days.
The rule, which expanded the definition of “fiduciary” under the Employee Retirement Income Security Act and the Internal Revenue Code, was the target of a recent executive action by President Trump, who directed the secretary of labor to thoroughly review the rule’s effect on Americans’ ability to access financial services. The delay will provide the DOL additional time to determine the rule’s full impact on consumers, and, if necessary, issue a new proposal for revising or rescinding the rule.
ABA has long advocated for changes to the fiduciary rule, as well as a longer implementation period to allow banks of all sizes time to comply.