News broke Wednesday of a plan to delay the implementation of the Department of Labor (DoL) Fiduciary Rule. As predicted by Hester Peirce, President Trump’s nomination to the SEC Commission, the DoL has now proposed to postpone the effective date until at least July 1, 2019.
This further delay was generally expected, however there may be relief from the financial industry at the length of the delay, as it provides further time for implementation. This suspension follows a round of industry comments to the DoL, most of which objected to the current proposals.
With each delay, it becomes more likely the rule will undergo significant revision. It has also been reported that the SEC may take over responsibility for its implementation and may draft a more easily enforceable set of rules to protect investors interests. This development is in tandem with the recently announced review of the Volcker Rule.