Newsflash: Ding Dong - Is ERISA's New Fiduciary Rule Dead?
*reader note: this Newsflash has been revised to reflect changes in reporting that occurred throughout the day on February 3, 2017
The Trump Administration has today, on February 3, 2017, reportedly issued a Memorandum directing the U.S. Department of Labor to conduct an economic and legal analysis of the U.S. Department of Labor's new fiduciary "investment advice" rule under the Employee Retirement Income Security Act of 1974, and to propose rescinding the rule if, among other things, it is inconsistent with the Administration's priorities. There are conflicting reports over whether the Memorandum also provides for a delay in the applicability of the rule, which is presently scheduled to begin becoming applicable on April 10, 2017. A version of the Memorandum available here has been rumored to be the final version of the Memorandum.
As Dechert has previously indicated in an OnPoint distributed on December 18, 2016, a delay in the rule's applicability calls into increased question the viability of the rule. Now, multiple news services are quoting officials in the Trump Administration as making statements in connection with today's order that are openly hostile to the rule.
If you would like to discuss what today's Memorandum means for the rule, or if you have any other questions regarding the rule, please contact the Dechert attorney listed below or any Dechert attorney with whom you regularly work.