Many financial industry veterans are feeling down about the implementation of the fiduciary rule on Friday. Despite high hopes for a successful revision or long delay, the rule succeeded in being partially implemented on Friday. This article points out a few reasons why. Firstly, new DOL chief Acosta was not appointed until very late in the game, just a few weeks before the rule was due to go into effect. Secondly, being a former law school dean, he followed the implementation rules very closely, seemingly ignoring some simple options (such as delaying on the basis of incoming SEC collaboration). Furthermore, there appeared to be some sabotage within the DOL itself, with language going into the delay’s drafting that undermined further delays.
FINSUM: There are plenty of unscrupulous brokers out there, but better some bad apples than an unscrupulous rule. We still think there is a good chance full implementation will be avoided, and perhaps all facets could be rolled back. The SEC getting involved is a good sign.