BREAKING: President Trump to Issue a Memorandum Suspending  Department of Labor's Fiduciary Rule BREAKING: President Trump to Issue a Memorandum Suspending  Department of Labor's Fiduciary Rule

BREAKING: President Trump to Issue a Memorandum Suspending Department of Labor's Fiduciary Rule

A White House official has announced that on Friday, February 3, 2017, President Trump will issue a memorandum to the Department of Labor (DOL) suspending the DOL's fiduciary rule.
 
Issued by the Obama administration in April of 2016, the rule expanded the definition of "fiduciary". Under the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code, a person is a fiduciary to the extent he or she conducts certain plan-related activities including rendering "investment advice for a fee or other compensation, direct or indirect, with respect to any moneys or other property of such plan. . ." The new regulations require advisers and brokers to act as "fiduciaries" – or in their clients’ best interest – when giving advice on retirement investments. The rule became effective in June 2016 and is scheduled to be implemented on April 10, 2017.
 
According to a White House official, in the memorandum President Trump will ask the DOL to reevaluate the rule and determine whether it should be revised or eliminated in its entirety.
 
The U.S. Chamber of Commerce and eight other groups have filed a legal challenge to the rule seeking to have it overturned. The federal judge reviewing the case has indicated that she plans to issue a decision no later than February 10th. For more information on the DOL's rule, please read our previous article.

For more information, contact Marc Sciscoe, Jasmin French or a member of our Employee Benefits practice.

This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader should consult with legal counsel to determine how laws or decisions discussed herein apply to the reader’s specific circumstances. 
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