The ultimate fate of the long-awaited investor protection rule may be unclear, but one thing investors can count on is that they'll have to be more vigilant when it comes to their retirement nest eggs.
On Feb. 3, President Donald Trump issued a presidential memorandum that instructed the Department of Labor to undertake an economic and legal review of the so-called fiduciary rule, which was years in the making.
This regulation, scheduled for implementation on April 10, requires financial advisors to provide investors with guidance that's in their best interest. The rule covers individual retirement accounts, as well as rollovers out of company-sponsored 401(k) plans.
Though the president's memorandum didn't contain explicit directions to delay the implementation, legal experts suggest such a postponement may be in the cards — but it's anyone's guess. Don't forget that the Trump administration hasn't yet gotten Senate confirmation for its Labor secretary nominee, Andrew Puzder.
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"We're two months out from the applicability date," said Tess Ferrera, a partner at Schiff Hardin in Washington, D.C. "It seems the most likely possibility is that they attempt to delay the rule before April 10 in some manner."
The Labor Department, meanwhile, is "considering options to delay the applicability date" of the rule, according to a statement from acting Labor Secretary Ed Hugler.
Nevertheless, you should still be on your guard over your investments and the people who oversee them.