In the article “DOL may be too late with final fiduciary rule,” InvestmentNews turned to Faegre Drinker partner Brad Campbell for his insight on the fate of the Department of Labor’s (DOL’s) fiduciary rule. The DOL released a final regulation to reform investment advice rules for retirement accounts, but the effective date falls after the Biden administration comes into power on January 20.
Campbell was DOL assistant secretary and head of the Employee Benefits Security Administration during the George W. Bush administration. He said the agency released an investment-advice rule that didn’t go into effect until after the Obama administration took office.
The Obama DOL delayed the rule’s effective date twice, took public comments on the rule and then withdrew it based on the comments. Based on his experience, Campbell thinks the same thing could happen to the just-released fiduciary rule.
“We’ve seen this movie before,” stated Campbell. “If they follow the Obama administration’s playbook, it should be a relatively straightforward exercise for the delay and ultimate withdrawal of rules that have not yet gone into effect before Inauguration Day.”