December 16, 2016
Fiduciary Rule Implementation: Impact of the New Administration
How will the election results impact the implementation timing of the final DOL rule, slated for April 2017?
While many in the financial community favor a delay in the implementation of the rule, so far there has been no mention from the Trump transition team on either the rule itself or its timing. According to key policymakers, including House Financial Services Committee Chair Jeb Hensarling (R-TX), if the new administration does not enact a delay, Congress likely will pursue one.
The congressional path to this end would meet with two significant challenges:
- The timing is potentially problematic. A bill would take time to move through Congress and might not be enacted by the current April implementation date.
- The success of such legislation is not guaranteed. It would require the support of at least eight Democratic senators, contending with the inevitably strong opposition of progressive members.
We will provide further updates on the new DOL rule as soon as they become available.
For insights from Capital Group investment professionals on election-related impacts across the industry, see our “perspectives” links at right.