WASHINGTON, D.C. - U.S. Senator Cory Booker (D-NJ) issued the below statement following the Department of Labor’s announcement today that it would delay full implementation of the fiduciary rule – also known as the conflict-of-interest rule – for 18 months, until July 2019.
“Today’s decision means that those financial advisors more concerned with their bottom line than with helping customers will now have 18 more months to ignore new consumer-friendly rules that protect Americans’ retirement savings from bad investment advice and hidden fees. This new delay is on top of a six-month delay in enforcement of the conflict of interest rule announced earlier this year.
“Enough is enough. It’s time to finally enforce these rules and ensure that every financial advisor prioritizes their clients' interests over their own.”
The fiduciary rule was initially set to take effect in April 2017, but was delayed following a directive by President Trump early in the year. After examining the rule, Labor Secretary Alexander Acosta announced in May that the rule would not be delayed further and would take effect in January 2018. Today’s announcement means the rule – which was originally announced in 2015 – will not be implemented until July 2019.
Senator Booker has been a leading voice in the effort to implement the consumer safeguard. In February 2015, he joined President Obama and Senator Elizabeth Warren at AARP’s headquarters to announce the new rule and the enormous impact it would have on families saving for retirement. When it was signaled earlier this year that the rule might be scrapped, Booker publicly pressured the Labor Department for months, sending several letters to the Labor Secretary and penning an op-ed with Senator Warren explaining why the rule was so important to Americans saving for retirement.