It’s been another eventful week for the Department of Labor’s controversial new fiduciary rule proposal, now referred to as the “Retirement Security Rule: Definition of an Investment Advice Fiduciary.”
While the House is today debating H.R. 5894—the Labor, Health and Human Services, Education, and Related Agencies Appropriations Act—which includes three Republican amendments that would block funding for the DOL’s fiduciary rule proposal—the Biden Administration has already released a statement saying President Biden would veto it.
And today we have confirmation that there will be no extension of the 60-day comment period for the proposed rule, despite a request from coalition of 18 financial industry trade groups saying the comment period is too brief for such a complicated rule, particularly given the holidays falling within the comment period.
A letter sent to consortium members Nov. 14 from EBSA’s Lisa Gomez confirms there will be no extension.
“…at this point, EBSA does not intend to extend the comment period or delay the hearing,” the letter said. “EBSA believes that its current proposal reflects significant input it has received from public engagement with this project since 2010, and looks forward to another robust comment period, public hearing, vigorous public debate, and stakeholder meetings.”
If adopted as proposed, the rule would define who is an investment advice fiduciary under the Employee Retirement Income Security Act of 1974 as a result of giving investment advice to retirement plan participants and individual retirement account owners, among others. The proposed amendments seek to make exemption conditions more uniform and protect retirement investors better, said a Nov. 15 press release from the DOL.
“This is an ill-considered move by EBSA that denies the public a meaningful opportunity to comment. The Department should rethink their response.”
ICI spokesperson Stephen Bradford
The release announced that the first public hearing will be held virtually on Dec. 12-13.
“One benefit of holding the public hearing before the comment period closes is that the testimony will inform the comments EBSA receives,” it continued.
“The hearing will provide interested parties with a full opportunity to provide important public input that will inform the Department of Labor’s next steps in the rulemaking process for the proposal,” said Assistant Secretary for Employee Benefits Security Lisa M. Gomez.
The online hearing will be held on Dec. 12 and Dec. 13, 2023, beginning at 9 a.m. EST. If necessary, the department will continue the hearing on Dec. 14, 2023, at 9 a.m. EST. Those interested in testifying at the hearing must submit a request to the department at www.regulations.gov on or before Nov. 29, 2023. The hearing notice with additional details about testifying is posted on the EBSA website at www.dol.gov/ebsa/retirement-security and will be published in the Federal Register. The hearing will be transcribed and EBSA will provide the transcript on www.dol.gov/ebsa/retirement-security.
Coalition members were not happy with the denial of the request for extending the comment period.
“This is an ill-considered move by EBSA that denies the public a meaningful opportunity to comment. The Department should rethink their response,” said Investment Company Institute spokesperson Stephen Bradford.
“IRI is disappointed with the Biden Administration’s rejection of additional time to comment on a nearly 500-page proposed fiduciary rule that will limit many lower- and middle-income consumers’ access to their choice of financial professional and to needed retirement planning strategies and products,” said Dan Zielinski, Chief Strategic Communications Officer at the Insured Retirement Institute.
In its Nov. 8 letter requesting an extension, the coalition argued that 60 days—and considerably less considering weekends and holidays—is not nearly enough time to review and comment on the DOL’s 500-page Proposed Retirement Security Rule and considerable amendments to a number of Prohibited Transaction Exemptions.
After the proposed rule was published in the Federal Register on Nov. 3, the 60-day comment period is set to expire on Jan. 2, 2024.
How to comment
Those interested in submitting comments about the DOL’s Proposed Retirement Security Rule may submit written comments, identified by RIN 1210–AC02, by any of the following methods:
• Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for sending comments.
• Mail: Office of Regulations and Interpretations, Employee Benefits Security Administration, Room N–5655, U.S. Department of Labor, 200 Constitution Ave. NW, Washington, DC 20210, Attention: Definition of Fiduciary—RIN 1210–AC02.
Instructions: All submissions must include the agency name and Regulatory Identifier Number (RIN) for this rulemaking. If you submit comments electronically, do not submit paper copies.
EDITOR’S NOTE: This article was updated to include information from the Nov. 15 EBSA press release.
SEE ALSO:
• Financial Groups Request Comment Period Extension for DOL Retirement Security Rule Proposal
• House Passes Amendments Blocking DOL Fiduciary Rule
• House to Vote on Bill Blocking Funding for DOL’s Fiduciary Rule