The Department of Labor has sent the revised version of its fiduciary rule to the White House for review, although the exact text of the proposed rule remains unknown.
The Office of Management and Budget, which is tasked with reviewing the proposed rule, posted on its website that it received the rule, dubbed “Improving Investment Advice for Workers & Retirees Exemption,” on June 1.
As of Wednesday morning, the OMB has not posted the text of the rule nor indicated how long the review may take.
The DOL was expected to put out a new fiduciary rule by the end of 2019 but did not do so.
First introduced during President Barack Obama’s administration, the original fiduciary rule required retirement account advisors to put their clients’ interest first. That rule, however, was vacated in an appeals court in 2018 after President Donald Trump directed the DOL to review the rule. In August 2019, Trump then tapped one of the architects of the rule’s demise, Eugene Scalia — who was one of the lawyers representing Sifma and the U.S. Chamber of Commerce in its legal challenge to the DOL’s rule — as the DOL’s new head.
Despite concerns about potential conflicts of interest in his appointment, the Senate confirmed Scalia’s nomination in September. And the DOL’s own attorneys determined in October that neither its own ethics rules nor Trump administration’s ethics pledge prevented Scalia’s from participating in drafting the new rule. .
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