Consumer Advocates Call on Biden to Delay DOL s Fiduciary Rule The Labor Department s final rule creating an exemption for fiduciaries on certain prohibited transactions under ERISA will go into effect after the start of the new administration.
Industry advocacy groups praised the Department of Labor’s newly finalized rule creating an exemption for fiduciaries from certain prohibited transactions under ERISA, while critics ranging from consumer protection advocates to Democratic senators and congressmen urged President-elect Joe Biden to keep the rule from ever taking effect.
The rule, which essentially reinstated the 1975 “five-part test” to determine whether an investment recommendation to a client in a retirement account would be covered by ERISA s fiduciary mandate, was