In a letter to Department of Labor Assistant Secretary Preston Rutledge today, ABA urged the DOL to make significant changes to its fiduciary rule in order to provide a finished, measured and functional regulation on investment advice. Under the direction of President Trump, DOL is currently in the process of reviewing the rule for possible repeal or revision, and announced at the end of 2017 that it would delay the rule’s compliance date for certain exemptions to the rule until July 2019.
ABA pointed out that the rule has created significant uncertainties due to its overbroad and unclear definition of investment advice, which has led to bank compliance and litigation risks and curtailed bank customers’ access to retirement products. ABA echoed its calls from previous comments for the DOL to revise the definition of “recommendation” under the rule, noting that it is unclear and subject to multiple (and often conflicting) interpretations. The association also urged DOL to confirm that banks may rely on an available statutory exemption under the Internal Revenue Code to administer their bank IRA/CD programs. For more information, contact ABA’s Tim Keehan.