FALLS CHURCH, Va. -- President Donald Trump has issued a memorandum instructing the Department of Labor to review its implementation of the “Conflict of Interest Rule,” also known as the fiduciary rule
. The memo further orders the department to undertake a thorough “economic and legal analysis” of the rule.
The National Association of Insurance and Financial Advisors (NAIFA) views the administration’s action as a crucial first step in ensuring that the DOL rule does not harm Americans preparing for retirement.
“It makes perfect sense for the administration to delay implementation of the Department of Labor fiduciary rule,” said NAIFA President Paul Dougherty. “Compliance deadlines imposed by the rule are quickly approaching, so it would make little sense to keep advisors, financial institutions and their clients in limbo while the administration undertakes its thorough review of the rule.”
“NAIFA has expressed a number of concerns about the rule, which would impose burdensome and costly restrictions and requirements on advisors and would limit middle- and lower-income retirement savers’ access to services and advice,” Dougherty added. “We look forward to offering the administration any information or assistance they may require as they review the rule.”
The presidential memo instructs the DOL to “examine the Fiduciary Rule to determine whether it may adversely affect the ability of Americans to gain access to retirement information and financial advice.” The memo cites specific concerns NAIFA has repeatedly raised
about the rule: that it could add to advisors’ legal liability, increase clients’ costs for advice and services, and severely limit middle-market consumers’ access to retirement services.
“Insurance and financial advisors act in their clients’ best interests every day, and a big part of that is helping them prepare for retirement,” said NAIFA CEO Kevin Mayeux. “NAIFA has utilized all three branches of government – from educating executive branch regulators
to working with members of Congress
to joining a lawsuit with the American Council of Life Insurers challenging the rule
– to ensure the rule doesn’t harm low- and middle-income investors. The fiduciary rule will remain a top priority for NAIFA as our members continue to help every-day Americans save and build financial security.”