President Donald Trump issued an executive order today directing the U.S. Department of Labor to delay its fiduciary rule. The order directs acting Labor Secretary Edward Hugler to delay the rule’s implementation.
“CUNA welcomes the administration’s announced delay of the Department of Labor’s fiduciary rule,” said CUNA Chief Advocacy Officer Ryan Donovan. “While CUNA appreciates that the DOL provided some of our requested clarifications in their final rule, we remain concerned about the impact this rule could have on credit union members’ ability to receive help saving and planning for the future.
“We believe a delayed implementation would benefit credit union members as it would allow DOL to consider more closely the potential unnecessary adverse impacts of the rule,” Donovan added.
The DOL’s rule, finalized in April 2016, defines who is a “fiduciary” of an employee benefit plan, adding brokers and advisers providing advice to individual retirement accounts.
CUNA supports the goal of the rule to protect investors, but raised questions about lack of clarity surrounding the rule and potential regulatory burden issues.