Labor Department headquarters inWashington. (Photo: Mike Scarcella/ALM)

Lawmakers and public interest groups are balking at the short30-day comment period the Labor Department has given for itsnewly proposed exemption for investment advicefiduciaries.

Labor "cut the minimum 60-day comment period in half to just 30days," said Stephen Hall, legal director and securities specialistfor Better Markets, in a Wednesday statement. "And for anotherrelated rule, it skipped the comment period entirely and justdeclared it 'final.'"

Hall called the 30-day comment period a"secretive approach to rulemaking [that] is unreasonable, unfair,and contrary to the law."

The new exemption to align with the Securities and ExchangeCommission's Regulation Best Interest was released on June 29, aday before Reg BI's June 30 effective date. Labor's proposal waspublished in the Federal Register on July 7. Comments are due toLabor by Aug. 6.

Sen. Patty Murray, D-Wash., ranking member of the Senate Health,Education, Labor and Pensions (HELP) Committee, and Rep. BobbyScott, D-Va., chairman of the House Education and Labor Committee,sent a letter to Labor Secretary Eugene Scaliarequesting an extended comment period.

Labor's plan, the lawmakers said, is "a weaker version whichwould let financial advisors put their own interests ahead of theirclients.'"

"Contrary to its name, the proposed rule does not requirefinancial advisors to abide by a fiduciary standard when providingretirement investment advice. Unscrupulous advisors could stillprioritize their financial interests and profit motives over thatof their clients' retirement interests," they wrote.

Thirty days is an "insufficient time for the American public toreview and respond to a complex, 123-page proposed rule," Murrayand Scott wrote.

Specifically, the lawmakers said, the proposed rule requiresfamiliarity with the 770-page Reg BI.

"The DOL owes it to the public to take the time to meaningfullyengage with people about their concerns rather than rushing througha rule that would seriously damage the retirement security ofpeople across the country," the lawmakers told Scalia. "During themiddle of a pandemic, when people across the country are grapplingwith severe economic and health challenges, it is as important asever for the DOL not to arbitrarily and unfairly rush through thisprocess."

Better Markets penned a letter along with other public interestgroups urging Labor to extend the comment period on the proposal toat least 90 days.

"The letter makes clear that 90 days is the minimum amount oftime necessary for all stakeholders to analyze the rule and preparetheir comments. That's because the proposal is so complex andimportant, affecting almost every American struggling to save for adecent retirement," Hall said. "Such a short comment period evenconflicts with the law, which provides that the public must have ameaningful opportunity to comment on rule proposals, with a minimumof 60 days if not more."