July 23, 2015

DOL Proposed Investment Fiduciary Definition Rule — Update

The Department of Labor’s (DOL) proposed conflict-of-interest rule, more commonly referred to as the investment fiduciary definition rule, received considerable attention this week. The public comment period on the proposed rule closed July 21, 2015 and, as of that date, the DOL had received nearly 600 comment letters. In addition, Secretary of Labor Tom Perez testified on the rule before the Subcommittee on Health, Employment, Labor and Pensions of the House Education and the Workforce Subcommittee last week (June 17) and at the Subcommittee on Employment and Workplace Safety of the Senate Health, Education, Labor, and Pensions Committee, Senate subcommittee this week (June 21).

With the rule endorsed by President Obama, Secretary Perez recognized that certain areas needed to be clarified, but stood strongly behind the need for and design of the proposed rule. In both written comments to the DOL and testimony at the Congressional hearings, business groups criticized the rule as non-workable, limiting the ability of participants to get investment advice, and discouraging small employers from establishing plans. Republicans in both the House and Senate called for the DOL to withdraw the rule. Procedurally, the next step is DOL’s August 10 – 12, 2015 public hearing on the proposed rule.

If you have any questions about these changes, please contact your Sibson consultant or send us a note.

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