December 6, 2022

Volume XII, Number 340

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December 05, 2022

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President Takes Action on Dodd-Frank and the DOL Fiduciary Duty Rule

This afternoon President Donald Trump issued a widely anticipated executive order directing a sweeping review of the Dodd-Frank Wall Street Reform and Consumer Protection Act regulations that, among other things, imposed burdensome rules on incentive compensation programs offered by financial institutions. Spokespersons were quoted as saying the administration is looking at making an immediate impact through administrative changes and personnel decisions.

President Trump also issued a separate memorandum directing the Department of Labor (DOL) to undertake a complete review of the new fiduciary rules applicable to financial advisors. Specifically, the president requested an examination of whether the rules would (i) reduce investor access to “certain retirement savings offerings,” (ii) result in “dislocations or disruptions within the retirement services industry,” and (iii) be “likely to cause an increase in litigation [and an] increase in prices that investors and retirees must pay to gain access to retirement services.” The order was generally expected to direct a postponement of the compliance date of the new DOL fiduciary rule, which is scheduled to become applicable beginning in April. It remains to be seen how the DOL will implement this directive and whether it will result in such a postponement. The DOL acting secretary has indicated that the DOL will now consider its legal options to delay the compliance date.

Copyright © 2022 by Morgan, Lewis & Bockius LLP. All Rights Reserved.National Law Review, Volume VII, Number 37
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About this Author

Robert Abramowitz, MorganLewis, Employee benefits lawyer
Partner

Robert L. Abramowitz is a partner in Morgan Lewis's Employee Benefits and Executive Compensation Practice. His practice involves counseling clients in all aspects of employee benefits law, including fiduciary law aspects of ERISA, qualified pension and profit-sharing plans, executive compensation, flexible compensation programs, welfare benefit plans, retiree health plans, ERISA concerns of investment advisers, and managed health care. A frequent author and speaker, Mr. Abramowitz was a Lecturer in Law in Villanova University Law School's Graduate Tax Program from 1986 to 2001 and has had...

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