Mutual fund giant Vanguard is urging the Department of Labor (DOL) to delay the implementation date of the Fiduciary Rule by at least 12 to 18 months to limit investor confusion and disruption.
“Vanguard strongly believes that investors should always receive investment advice that is in their best interest, and those who provide investment advice should be held to a fiduciary standard. At the same time, we want regulations as far-reaching as the rule to be well-crafted and thoughtfully implemented to limit investor confusion disruption, and cost,” Vanguard CEO Bill McNabb wrote in a comment letter, sent to the Department of Labor.
The rule would expand the definition of fiduciary, impacting financial advisers providing retirement savings advice by requiring them to put their clients’ best interests first. Advisers would have to disclose their fees and commissions to clients to avoid conflicts of interest, which opponents argue would raise costs and make retirement planning more difficult for investors.
The DOL proposed extending the implementation of the rule by 60 days from the original launch date of April 10. If the extension is approved, implementation would be pushed off until June 9.
President Donald Trump has also directed the Labor Department to delay implementation of the rule for further review to determine whether it may adversely affect the ability of Americans to gain access to retirement information and financial advice.
“We urge the department to act quickly and decisively,” McNabb wrote. “This delay is necessary to allow the department to review the legal and economic basis for the rule and consider public comments as required by the presidential memorandum. It is unrealistic to expect the department to accomplish the full review and potential revision or rescission of the rule as directed in the presidential memorandum in 60 days.”