OMB Files Conclusion of Its Review of DOL’s Fiduciary Rule Delay Request

Feb 28, 2017

Earlier today, the Office of Management and Budget announced the conclusion of its review of the Department of Labor’s proposed rule to delay implementation of the Department’s fiduciary rule, which is currently scheduled for implementation on April 10.

When originally submitted to the OMB for review, the DOL had indicated that the rule delaying the implementation of the fiduciary rule was “not economically significant.” The OMB changed this to “economically significant” after its review. Additionally, the OMB’s review notice states that the DOL’s proposed rule to delay the fiduciary rule is a “major” rule, which under the Administrative Procedure Act requires a 60-day time period between its finalization date and effective date.

In addition to the longer notice period, the change to “economically significant” requires the DOL to provide the OMB with an analysis of the economic impact that the proposed rule to delay implementation of the fiduciary rule would cause. It remains unclear if this will result in the DOL’s proposal to delay implementation of the fiduciary rule being delayed itself beyond April 10.

Our core understanding remains - the fiduciary rule will be delayed; however, uncertainty remains if this will occur via a 180-day delay, which has been widely reported since the Trump administration directed the DOL to amend or replace its fiduciary rule on Feb. 3.

ADISA will continue to track this issue of importance to our membership and report back as events warrant.

Members of the alternative and direct investment securities industry can get an in-depth update on the rule’s status and receive a full legislative and regulatory update at ADISA’s 2017 Spring Conference, April 3-5, 2017, in New Orleans. Click here to register.

Read the OMB’s conclusion of its regulatory review here.