Dear NAIFA member,
The Department of Labor has issued a 60-day delay for the applicability date of the DOL fiduciary rule affecting advisors in the retirement space. The rule was set to become applicable on April 10. Previously, as NAIFA and our coalition partners emphasized to the new administration just how important the DOL fiduciary issue is, President Trump instructed the DOL to review the rule to determine whether it will harm consumers. Specifically, he directed the DOL to determine if the rule has or will: reduce consumer access to retirement products, adversely affect investors or retirees, or increase “the prices that investors and retirees must pay to gain access to retirement services.”
All of these are concerns NAIFA has raised about the DOL rule. Therefore, we support the current delay and the Trump administration’s review of the rule. We are currently conducting a survey of advisors on the rule’s impacts, and we will provide DOL with the survey results to consider as part of the review. We would urge the DOL to seek a further delay if more time is needed to conduct a thorough review.
NAIFA President Paul Dougherty issued the following statement to the media, NAIFA members, and our
colleagues in the industry:
“The Department of Labor has prudently decided to delay the applicability date of the fiduciary rule for financial advisors issued under the former administration to give the current administration time to review how the rule might negatively impact consumers. This is a step in the right direction, because NAIFA remains concerned that unintended consequences of the rule could disrupt the marketplace, increase costs for retirement savers, and eliminate access for middle- and lower-income workers to individualized retirement planning services.
“NAIFA will contribute to the DOL review of the rule by providing data and advice from our members, who are on the front lines in communities across the United States serving the individuals, families and small businesses the rule is likely to impact the hardest. We look forward to working with the Department and Congress to ensure advisors are able to continue providing top-notch service to clients of all income levels.”
While the current delay is a big deal, and NAIFA put in a lot of hard work with our coalition partners to see that it happened, we are not finished.
NAIFA has worked since the rule was first proposed to reduce its negative impact on advisors and their clients and we will continue to do so. Our leaders have met with DOL officials and testified before Congress and at DOL hearings on multiple occasions. The DOL rule has been a focus of NAIFA grassroots advocacy, including our annual Congressional Conference. It will also be an important issue at this year’s Congressional Conference, May 23-24, so if you have not yet signed up, please do so today!
I want to assure you that NAIFA will not rest. We will continue to utilize all three branches of government to prevent the DOL rule from damaging your businesses and to ensure that you are able to continue preparing your clients for financially secure retirement.