The first two prongs of the DOL’s fiduciary rule governing retirement accounts—the first of its kinds for brokers—went into effect June 9. But the DOL has sent the Office of Management and Budget a request for an 18-month delay of the rule due to an outpouring of broker-dealer objection and the request for an economic impact study by President Trump.
“We will have to see what the rule says when the OMB publishes it,” Borzi said. “The industry strategy is to delay as long as possible and get the industry to issue a faux best interest standard and then to get the DOL to water down or defer compliance.”
While the industry is suing to block the DOL’s rule, and a court ruling is expected by mid-December on that lawsuit, Borzi and other consumer watchdogs such as the Consumer Federation of America, have said they have seen no new evidence to suggest the rule hurts small business retirement plans, small investors or broker-dealers.
These are “really just recycled, old studies” that were already included in earlier industry comments, said Borzi, who predicts that, despite challenges and delays, there will be an industry-wide fiduciary rule.
“There is this global movement to do this,” Borzi said. “I don’t think there is any turning back.”