The FAQ’s recently posted by the Labor Department on its latest ERISA fiduciary investment advice guidance warn that this project is far from over, and are troubling in a number of respects.
- DOL is compelling the regulated community to comply with its recent guidance by December 20 notwithstanding its intention to change the governing rules in the near term.
- DOL is on the path to recreating its vacated 2016 rule (other than the private right of action for IRA owners).
- DOL may be steering financial services providers to a fiduciary model, notwithstanding how they are treated by their primary regulation.
- In sum, the signals point to DOL resuming its 2015-2016 effort to restructure the financial services industries.
- Given the range of best interest standards recently extended to financial services providers under other bodies of law, there cannot be an updated empirical record that justifies further regulation by DOL.
