The Fiduciary Rule is like a bad soap opera where the action takes too long to happen and it’s just stretched out over time making small turns with some end game to happen later down the line.
The Office of Management and Budget has approved a proposal to delay for 18 months implementation of the remaining provisions in the Department of Labor’s (DOL’s) fiduciary rule.
The DOL has proposed pushing back the applicability of the enforcement mechanisms in the fiduciary rule from Jan. 1, 2018, to July 1, 2019, while it undertakes a review of the measure mandated by the Trump White House.
What does it mean? The DOL under Trump wants to gut the rule and it needs the time and political capital to do it. Taking out the enforcement mechanism of the fiduciary rule makes the rule essentially toothless. It kicks the can down the road to the point where the DOL could kill the new rule once and for all. The problem with kicking down the can is that any political future is uncertain. Just ask the DOL under President Obama making the applicability date in 2017 when they thought Hillary Clinton would be President.
What will happen with the rule? Your guess is as good as mine.