On February 3, 2017, President Donald J. Trump issued a Presidential Memorandum on Fiduciary Duty Rule. The Memorandum states that the definition of fiduciary regulation “may significantly alter the manner in which Americans can receive financial advice, and may not be consistent with the policies” of the Trump Administration.
The Memorandum directs the Department of Labor to review the regulation and consider whether it may harm access to financial advice and retirement information. Among other non-exclusive factors, the Department must consider whether the regulation has led to adverse “dislocations or disruptions within the retirement services industry” and whether the regulation is likely to lead to a growth in litigation. Should the Department conclude that the regulation is inconsistent with the considerations outlined in the Memorandum, the Department must publish a proposed rule, subject to notice and comment, revising or rescinding the regulation. The Memorandum is currently available here: https://www.whitehouse.gov/the-press-office/2017/02/03/presidential-memorandum-fiduciary-duty-rule.
On February 4, 2017, the Department issued a one-line statement indicating that it “will now consider its legal options to delay the applicability date as [it] compl[ies] with the President’s memorandum.” The regulation was to become applicable on April 10, 2017.