ThinkAdvisor and Benefits Pro published the article, “Time Running Out for Trump DOL Fiduciary Rule,” that reports on benefits and executive compensation partner Brad Campbell’s breakdown of how the outcome of the U.S. presidential election could affect the Department of Labor (DOL)’s fiduciary rule.
During Faegre Drinker’s “Inside the Beltway” webinar, Campbell discussed how the DOL’s proposed fiduciary prohibited-transaction exemption to align with the Securities and Exchange Commission’s Regulation Best Interest could be futile if the DOL fails to send its final version this week to the Office of Management and Budget for review and finalization.
Campbell explained that if Biden is elected and President Trump publishes a final rule before Nov. 20 — 60 days before the end of his term — the Biden administration “typically would have to use notice and comment rulemaking to suspend or modify that regulation,” which is a time-consuming process, he added.
But if President Trump puts a rule on the books less than 60 days before the end of his term, the Biden administration could squash it “basically with a stroke of a pen,” said Campbell.
Campbell acknowledged that if there’s a Biden administration it doesn’t mean the fiduciary rule issue is dead, but instead that the Biden administration would also likely pursue a fiduciary regulation.
The fiduciary rule is “very much a live issue, no matter who wins,” Campbell said.
Additional source: Benefits Pro