The thing about the new, new proposed fiduciary rule

Ary Rosenbaum
Contact

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

In 1984, Lorne Michaels created a new show, based on Saturday Night Live (SNL) when he was no longer SNL’s producer. It was called “The New Show”, how clever. It failed, people liked the original and within a year, Lorne came back to SNL as Executive Producer.

The recent decision by the Department of Labor (DOL) to unveil a proposed new fiduciary rule is certainly interesting. Since the canning of the old new rule, thanks to the Trump ruled DOL rolling over by not appealing a negative court decision, it took over 2 years to develop a new, new rule. I see lots of problems.

The biggest problem is that the proposed rule was released during a Presidential election year. Despite my Professor Helmut Norpoth’s view that Trump has a 91% chance of being reelected, President Trump’s re-election is still very much up in the air. A Joe Biden victory will likely lead to the pullback of this new, new fiduciary rule with their hopes of a new, new, new fiduciary rule that will be more stringent on brokers and insurance salespeople. My second concern is that the new rule is a watering down of the 5 parts rule, allowing enough leeway for brokers and insurance salespeople to still do what’s best for them.

As an ERISA attorney, I can also write 85 articles about the effects of this new, new rule, but I’m not going to take a bet that it will ever take effect. This November will solve it.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ary Rosenbaum, The Rosenbaum Law Firm P.C. | Attorney Advertising

Written by:

Ary Rosenbaum
Contact
more
less

The Rosenbaum Law Firm P.C. on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.