Wealth Management turned to benefits and executive compensation partners Fred Reish and Brad Campbell for their thoughts on the Department of Labor (DOL)’s decision to move forward with the Trump administration’s fiduciary exemption rule. In the article “DOL Fiduciary Rule’s Impact Will Be Felt by Advisors, Brokers,” the publication highlighted what Reish and Campbell had discussed regarding the rule taking effect in a webinar on Feb. 16.
Reish acknowledged that the “conventional wisdom” had been that the department would place an additional stay on the rule, and Campbell said the “different moving pieces” surrounding the potential regulation (or lack thereof) confused many.
Campbell added how “Frankly, no one expected the Trump administration to take the position it took, and then no one expected the Biden administration to let the Trump position stand, at least for now.”
Campbell also addressed how the new rule made additional demands on professionals and their respective financial institutions, including that they both agree to be a fiduciary in writing and complete a series of disclosures on fees and conflicts akin to what’s demanded by Reg BI.
“There are things to be put into place that in all likelihood have not been put into place by your RIA or your broker/dealer because no one actually thought this exemption was going to go into effect today,” said Campbell. “The anticipation was the Biden administration would delay it by an additional 60 days and review it.”