WASHINGTON (2/1/16)--Reports indicate that the U.S. Department of Labor (DOL) is moving forward with its fiduciary rule, and the proposal has been sent to the Office of Management and Budget.
According to Investment News, the OMB is expected to finish its review process well ahead of its allotted 90 days, which will be followed by the DOL releasing the final rule publicly.
The proposal would define who is a “fiduciary” of an employee benefit plan, which includes adding brokers and advisers providing advice to individual retirement accounts.
The Credit Union National Association (CUNA) has urged the DOL to consider the detrimental impact the proposal could have on credit unions that offer investment services.
In July, CUNA filed a comment letter with DOL, expressing that it is necessary for the agency to analyze how it can more narrowly tailor the definition of “investment advice” to assure that credit union employees who are only tangentially involved in providing investment services, are not included in the rule.
CUNA also urged the agency to further consider how the barriers created by the rule could negatively impact consumers’ access to retirement and investment services, particularly lower net-worth credit unions members who may have fewer opportunities to participate in retirement and savings plans.
The DOL conducted a four-day hearing after the initial comment period, and CUNA submitted an additional letter in response to it.
In addition, 105 lawmakers signed a letter in October 2015 calling for “substantial changes” to the proposal.