A regulation that aims to protect your retirement savings from bad brokers may be on its last legs.
A portion of the Labor Department's "fiduciary rule," which requires financial advisors to act in your best interest when giving advice on your 401(k) and individual retirement accounts, was supposed to take effect on Jan. 1. The Labor Department oversees regulation of retirement plans.
It has since been delayed to July 1, 2019.
The provisions that have been postponed include one that would allow advisors to continue earning commissions, provided they enter a contractual agreement that they will act in the client's best interest.
Though other parts of the rule took effect onJune 9, 2017, consumer advocates fear that the postponement is a sign that the rule is slowly being defanged.
"'Delay' implies that it will take effect," said Barbara Roper, director of investor protection at the Consumer Federation of America.
"The department has made clear that they will significantly revise the rule, including by eliminating provisions that make it effective and enforceable," she said.
Here is where the rule now stands.