The executive order President Trump has been expected to signdirects the Labor Department to delay the fiduciary rule to give the financial industryanother six months to comply with the regulation, according to adraft of the order obtained by BenefitsPro.

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According to the draft of the order, the Labor Department willreview the rule to determine “whether it may adversely affect theability of Americans to gain access to retirement information andfinancial advice.”

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The order also instructs the Labor Department to execute a neweconomic impact analysis of the rule.

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Specifically, that new analysis will examine whether the April10 implementation date of the rule “has harmed or is likely to harminvestors” by reducing access to some retirement investmentproducts.

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Labor is also instructed to determine if the rule has disruptedthe retirement services industry in a way that will adverselyimpact investors, and whether or not the rule is likely to createan increase in litigation and if it will raise the cost investorspay for retirement advice and investments.

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The draft of the executive order specifically takes aim at therule’s Best Interest Contract Exemption, the rule’smain enforcement mechanism, and instructs the Labor Department todetermine whether it “undermines the rule’s effectiveness atachieving its intended goals.”

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Upon completion of the new analysis, the order instructs theLabor Department to publish a new rule “rescinding or revising” theBIC Exemption and other prohibited transaction exemptions in theregulation.

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“The Department shall further consider whether an additionalpostponement of the Fiduciary Duty Rule’s applicability date shouldbe instituted to ensure that affected entities have a reasonableperiod of time to come into compliance, taking into account thelong lead times necessary for regulated entities to alter affectedexisting contracts, issue new contracts, and provide clear andaccurate information and disclosures to plan sponsors, investors,and retirees,” according to language in a draft of the order.

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The order also instructs the Labor Department to consult withthe Department of Justice to potentially drop its defense ofpending litigation against the rule.

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The draft of the order obtained by BenefitsPro could be subjectto change.

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Sean Spicer, the White House Press Secretary, called the rule a“solution in search of a problem” during a press conference, andsaid President Trump is issuing the order because the “DOL exceededits authority with this rule.”

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Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.