Displaying items by tag: fiduciary

Tuesday, 01 November 2022 14:01

New Fiduciary rule put on ice

Anyone say temporarily neutralized bucking bronco? John Elway? Nah. He’s moved on to other career opportunities.

Instead, despite attempts by the DOL to standardize fiduciary practices across financial professionals, they’ll remained sidelined until at least Q1 2023, according to forbes.com.

Stemming partially from two active and related legal cases, the regulation – aimed at creating a universal fiduciary guidance standard – probably will be tabled again. At least that’s the burgeoning consensus among retirement professionals.

Under the Trump presidency, the DOL released PTE 2020-02 in December 2020, according to worldnewsera.com. As a result, investment advice fiduciaries could receive payment linked with rendering fiduciary investment advice, including advice on rolling over the account of a participant in an employment retirement plan to, for example, an IRA.

That was in the aftermath of the Fifth Circuit Court of Appeals decision to overturn the fiduciary rule in 2018 from the Obama administration. The court not only cited it was “unreasonable”, it was said the execution of the rule by the DOL amounted to “an arbitrary and capricious use of regulatory power.”

Within the retirement plan sector, in the aftermath of the 2020 election, many thought the Trump administration’s rule would be deep sixed. Instead, while emphasizing it would review the five part criteria and – if it saw the need – implement changes, the Biden administration allowed it to go into force.

Published in Eq: Financials
Thursday, 01 September 2022 14:16

Fiduciary: rewrite all but rules

Anyone see the copy desk? It appears the definition of the fiduciary might be in for a rewrite, according to winkintel.com.


At this point, the Department of Labor needs to rewrite its fiduciary definition to all but make all first time advice fiduciary is just about the lone thing still on the table, analysts concur.

In that event, the alternation would pull weight and basically revert the DOL back to its maiden 2016 fiduciary rule, said Brad Campbell, partner at Faegre Drinker law firm. As it stands, the DOL’s package known as the investment advice rule makes rollover advice fiduciary, the site continued.


Valuable investment advice consists of two primary elements. One evolves around a new prohibited transaction exemption. Here, advisors can provide conflicted advice for commissions. The other is a reinstatement of the 1975 “live part test” in order to ascertain that which constitutes advice on investments.


Campbell noted the initiative’s “likely to be a very substantial proposal that will harken back to legal fights of 2016, which the DOL ultimately lost,” according to fa-mag.com.

The DOL, he continued, “is taking the position that fiduciary starts with the initial or rollover conversation. That's a pretty aggressive reinterpretation of what they historically had said, which frankly was ... that most rollovers were not fiduciary,”.

Published in Eq: Total Market
Thursday, 03 March 2022 08:24

Expect a New Fiduciary Rule This Spring

Some major industry lawyers think the DOL is poised to issue the newest fiduciary rule in short order. Bradford P. Campbell, partner at Faegre Drinker Biddle & Reath says that the new rule will be coming this Spring. The new rule is a long-time coming if you consider that they began working on it when Biden took office well over a year ago. According to Campbell, that makes sense, "That's because the issues are hard. To their credit, they're spending a lot of time meeting with people and discussing the issues. I think DOL is just taking time to do the rule as best they can". According to Fred Reish, another partner at the firm, "I've heard from people that they're actually working very hard on it right now ... So it's not like it's been set aside on the top of a desk until somebody gets confirmed".

FINSUM: This would be a big move by the DOL and is likely to catch advisors unaware as with all the volatility this year, this has not been high on the overall wealth management radar.

Published in Eq: Financials
Friday, 08 October 2021 21:09

DOL Readies Major Expansion of Fiduciary Rule


Joe Biden has picked Lisa Gomez to head the Employee Benefits Security Administration at the Department of Labor. And speaking to senators this week, she made a comment which clearly signals the direction of the Department. She said “there’s nothing that is more central to ERISA than defining who is a fiduciary”. Speaking about her pending work for the DOL, she said she plans “to be briefed on the efforts of looking at the definition of a fiduciary in different contexts, and taking another look at the conflict of interest rule and how it would apply in different situations”. She continued “Determining exactly who is a fiduciary in different contexts … has been the source of disagreement and it’s been a long road to get there”.

FINSUM: The writing is on the wall at the DOL and SEC. The Biden administration is starting to flex its muscle and will beef up regulation.

Published in Wealth Management
Thursday, 17 December 2020 16:33

Dissolve Reg BI says House to Biden


The House Financial Services Committee sent a very strong message to president-elect Joe Biden this week: dissolve Reg BI. Chaired by Maxine Waters, the committee said that the Trump administration had "taken several actions that have eroded shareholder rights, established regulatory barriers to shareholder engagement, increased issuer involvement in the proxy voting advice process and stripped away fundamental investor protections, including safeguards around private markets, where investors have few protections”, and that Biden should take care of the issue by getting rid of Reg BI, and separately, CRS altogether.

FINSUM: Industry experts seem to agree that the Biden Administration is unlikely to completely unwind Reg BI, if only because getting a new rule through would require Congressional approval. While that could still happen depending on how the Georgia runoffs go, it seems more likely the new SEC team would just employ very strict enforcement of Reg BI.

Published in Wealth Management
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