President orders study of Fiduciary Duty Rule

President Trump issued an Executive Memorandum directing the Department of Labor to examine the Fiduciary Duty Rule to determine whether it may adversely affect the ability of Americans to gain access to retirement information and financial advice. He ordered an updated economic and legal analysis concerning the likely impact of the Fiduciary Duty Rule to consider, among other things :

• Whether the anticipated applicability of the Fiduciary Duty Rule has harmed or is likely to harm investors due to a reduction of Americans' access to certain retirement savings offerings, retirement product structures, retirement savings information, or related financial advice;
• Whether the anticipated applicability of the Fiduciary Duty Rule has resulted in dislocations or disruptions within the retirement services industry that may adversely affect investors or retirees; and
• Whether the Fiduciary Duty Rule is likely to cause an increase in litigation, and an increase in the prices that investors and retirees must pay to gain access to retirement services.

If the Department makes an affirmative determination of one or more of those considerations, it is directed to "publish for notice and comment a proposed rule rescinding or revising the Rule, as appropriate and as consistent with law." The rule is currently scheduled to take affect in April, but the acting Secretary of Labor said that the Department will consider its options to delay that date pending the required review.