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Exec Order Directs DOL to Delay Implementation of Fiduciary Rule
Monday, February 6, 2017 6:40 AM

Among the executive orders issued on Friday, President Donald Trump directed the U.S. Department of Labor (DOL) to stop its fiduciary rule implementation and review the regulation in its entirety. Credit Union National Association and Cornerstone Credit Union League support the goal of the rule to protect investors, but have concerns that regulatory burdens and the complexity associated with this rule could make it more difficult for consumers of all means to receive support planning for their financial future from credit union service organizations and some credit unions.

"Cornerstone appreciates efforts to pause regulatory changes and reevaluate their impact and effectiveness," said Cornerstone SVP Regulatory Compliance Counsel. "We will communicate with the DOL again the importance of ensuring that any revisions to the Fiduciary Rule do not prevent credit unions and CUSOs from assisting credit union members. Additionally, we certainly hope that the executive directive regarding financial system regulations will reinforce to CFPB the importance of exempting credit unions from unnecessary regulatory burdens and instead tailor regulations to address bad actors in the system."

“While CUNA appreciates that DOL provided some of our requested clarifications in their final rule, we remain concerned that all members should have the ability to receive help saving and planning for the future, without unnecessary regulatory barriers,” said Ryan Donovan, CUNA chief advocacy officer. “We believe a delayed implementation would benefit credit union members as it would allow DOL to consider more closely the potential unnecessary adverse impacts of the rule.”

The DOL’s rule, finalized in April 2016, defines the “fiduciary” of an employee benefit plan, adding brokers and advisers providing advice to individual retirement accounts.