What’s the Department of Labor’s next move on its fiduciary rule?
Financial Planning
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Thousands of financial advisors are facing new potential rules from the Department of Labor that could affect their businesses significantly or just start a new wave of industry legal fights.
After taking over last year, the Biden Administration’s Labor Department acted quickly in withdrawing the Trump Administration’s Independent Contractor Rule and unveiling its plans “to more appropriately define” when financial advisors are fiduciaries. That flurry of activity has been stymied by a court decision overturning the withdrawal of the rule and the threat of restarting the industry’s ongoing fiduciary debate anew, though.?
Enter trade groups such as the Financial Services Institute, which is cheering the latest court decision in its favor blocking the actions of a Democratic administration’s Labor Department while warning of potential risks to independent advisors and retail investors’ access to advice. At the same time, consumer advocates with opposing views are calling on the agency to act “expeditiously” toward issuing a new fiduciary rule and revamping the guidelines covering who is an independent contractor and who’s an employee.
The DOL’s next steps could have serious impacts on brokers. Chief Correspondent Tobias Salinger’s story has more on what could be coming.
In other news:
Sen. Joe Manchin's lack of support means that the proposal to tax unrealized gains is almost certainly no longer an option.
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Managing Editor, PYMNTS Intelligence. I'm a versatile editor, writer and content strategist with a strong grasp of audience and channel. Invited HBR Advisory Council member.
2 年As estate planner #MartinShenkman told me here, financial advisors are in for yet another roller coaster of back and forth on potential tax increases on the wealthy. https://www.financial-planning.com/news/tax-hikes-on-the-wealthy-roar-back-in-biden-budget