Despite the partial implementation of the rule last month, fiduciary rule opponents have a lot to cheer about. The DOL is trying to abandon the private right of action clause of the rule, and Congress continues to try to craft legislation to kill the rule. Today, there is more good news. The questions the DOL is asking in its request for information ( RFI ) indicate it is trying abandon another big piece of the rule-the inclusion of advice on rollovers from 401(k)s into IRAs. The inclusion of advisor advice on this topic was one of the most contentious parts of the rule, and the DOL explicitly asked this question in its newest RFI: "Should recommendations to make or increase contributions to a plan or IRA be expressly excluded from the definition of investment advice?"
FINSUM : We think this is a great sign for advisors. The DOL appears to be effectively getting rid of the fiduciary rule by eliminating its enforcement mechanisms and general purview, which looks like it may be an effective strategy.
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