Consumer advocates are sounding alarm bells over the Labor Department's latest move in the battle over a controversial investor-protection rule, saying it means retirement savers will remain vulnerable to conflicted advice from some financial advisors.
An amended rule issued by the Labor Department, published in the Federal Register today, delays the effective date of certain provisions in the so-called fiduciary rule by 18 months, to July 1, 2019, from Jan. 1, 2018.
Other parts of the rule, which took effect June 9, place requirements on advisors when it comes to recommending investments and providing advice regarding 401(k) plans and individual retirement accounts. They must provide advice that aligns with clients' best interests, charge reasonable compensation and not make misleading statements.
The remaining delayed provisions articulate what advisors must to do meet those requirements.