The Department of Labor sent the final version of the proposed fiduciary rule to the Office of Management and Budget for review Thursday.
The formal notice of submission by the DOL to the Obama administration’s OMB was placed on www.reginfo.gov Friday morning.
The notice has no text, and the final copy of the rule won’t be available until after an examination by the OMB and its return to the Labor Department.
The OMB has 90 days to accept or reject the rule. But considering that the proposal is viewed as a legacy accomplishment for President Obama, its approval is almost certain.
Department of Labor spokesperson Mike Trupo said he could not estimate when the final version of the extensive conflict of interest regulations for pension plan advisors would be made public and official by the agency.
The action by the DOL makes it inevitable that a final rule will be out by the end of the year, said Investment Adviser Association lobbyist Neil Simon.
Simon noted Congress has a little-used power to void rules. But he said a joint resolution by the House and the Senate would undoubtedly be vetoed by the president, and the Senate would lack the two-thirds vote to override.
Simon said the most serious challenge facing the fiduciary rule will come in the courts where suits by financial institutions and trade groups are expected.
The announcement that the fiduciary rule was sent to the White House drew praise from Kate McBride, chair of the Committee for the Fiduciary Standard.
“I’m very excited to see we are at this point in the process,” she said. “DOL has done an amazing job.”