February 21, 2017

Josh Waldbeser Quoted Regarding OMB Delay of Fiduciary Rule

Chicago associate Josh Waldbeser was quoted in a ThinkAdvisor article titled, “OMB Looks Ready to Ok Delay of Fiduciary Rule.” The Office of Management and Budget (OMB) is meeting with several groups, including AARP and Better Markets, continuing speculation that the fiduciary rule could be delayed soon as this week.

Following President Trump’s order to the Labor Department to review the fiduciary rule, the DOL is expected to prepare an updated economic and legal analysis regarding the rule’s likely impact. It was previously anticipated that the rule would be delayed 180 days, but more recent rumors indicate that the initial delay might only be 60 days. Likewise, it is unclear whether the delay would necessarily follow the traditional process of being proposed and then opened up for public comments before being finalized, or whether an immediately effective interim final rule might be considered. Josh highlighted why the interim rule might be issued and the timeline of each.

“A proposed rule allows for a public comment period and the comments are then reviewed and taken into account before the rule is finalized,” Josh said.” This is the normal process applied in most cases. "An interim final rule is effective immediately, and public comments are then permitted after the fact. Interim final rules are usually issued where there is 'good cause' to issue a rule without first running it through the public comment process, which the Administrative Procedure Act requires as a general matter."

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