A coalition of 18 financial industry trade groups wrote to the Employee Benefits Security Administration today requesting a 60-day extension to the 60-day comment period on the Department of Labor’s new fiduciary rule proposal.
The groups say just 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 currently set to expire on Jan. 2, 2024. The DOL anticipates holding a public hearing approximately 45 days following the date of publication in the Federal Register, which would put the hearing on or around Dec. 18.
“This brief of a comment period for a proposed rule on the definition of a fiduciary, is unprecedented.”
Coalition letter to EBSA
“This brief of a comment period for a proposed rule on the definition of a fiduciary, is unprecedented,” said the letter, addressed to DOL Assistant Secretary Lisa Gomez.
“The Proposed Rule makes significant and unanticipated changes to the current regulatory framework that will require significantly more time for meaningful analysis and comment, and to understand how this proposal would impact access and choice for retirement savers,” it continued.
The letter went on to point out that when the 2010 Fiduciary Rule was released, DOL initially had a 90-day comment period, followed by a 14-day extension. DOL then held a public meeting, followed by a 15-day comment period for response. For the 2016 Fiduciary Rule and Related Exemptions, DOL allowed a 75-day comment period and granted a 15-day extension. After a public hearing, there was then another 15-day comment period.
“We believe that DOL should again provide at least a similar comment period, especially for a proposal that is nearly 500 pages long,” the letter states.
The groups point out that the comment period includes multiple federally recognized holidays, meaning the 60-day comment period actually includes only 39 workdays.
“An extension would benefit not only the commenters, but DOL itself. DOL should use comments as a resource, but providing too short of a comment period limits the possible benefits,” the letter states.
Finally, the groups argue that holding a public hearing before the close of the comment period effectively shortens the comment period even further.
“Holding the hearing after the end of the comment period would allow for DOL to ask questions about the comments that they have received, fostering clarification and better understanding,” the letter said. “Commenters would also be able to provide feedback to the department on the input provided by others.”
The letter closed by urging the DOL to grant at least a 60-day extension of the comment period and to schedule the public hearing for a date after the initial comment period closes, followed by an additional 30-day comment period.
“Considering that DOL has spent almost three years crafting the Proposed Rule, it strikes us that affording all interested stakeholders sufficient time to provide meaningful feedback would be in DOL’s interest.”
Organizations signing the letter (listed in alphabetical order) include:
Alternative & Direct Investment Securities Association (ADISA)
American Bankers Association (ABA)
American Benefits Council (ABC)
American Council of Life Insurers (ACLI)
Committee of Annuity Insurers (CAI)
Financial Services Institute, Inc. (FSI)
Finseca
Indexed Annuity Leadership Council (IALC)
Institute for Portfolio Alternatives (IPA)
Insured Retirement Institute (IRI)
Investment Company Institute (ICI)
National Association for Fixed Annuities (NAFA)
National Association of Insurance and Financial Advisors (NAIFA)
Securities Industry and Financial Markets Association (SIFMA)
SPARK Institute
The ERISA Industry Committee (ERIC)
The ESOP Association
U.S. Chamber of Commerce
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.
Again, if the comment period is not extended, it is currently scheduled to end on Jan. 2, 2024.
SEE ALSO:
• 401(k) Specialist Pod(k)ast: IRI’s Jason Berkowitz: Why Biden’s Fiduciary Rule Gets it Wrong
• Breaking Down the DOL’s Five-Part Test
• DOL Fiduciary Rule Released; Industry Reaction Pours In
• Biden: DOL Fiduciary Rule is a Further Crackdown on ‘Junk Fees’