Expect a stronger, more lawsuit-proof fiduciary rule very soon

investmentnews.com:

The DOL continued its fast-track pace on its fiduciary rule, sending a final version to the White House last week that will likely be released in a matter of weeks.

Lawyers who have been carefully reviewing the fiduciary rule say that it’s not likely that the Department of Labor will change much from the contentious proposed version of the rule and its prohibited transaction exemptions. The department is racing ahead to make it difficult for Congress or a new president to undo the rule.

It’s notable that the deadline for public comments was January 2 for a rule that was proposed at the end of October and that is now in its final form, said Fred Reish, partner at Faegre Drinker Biddle & Reath. Evaluating a mountain of comments from the public and industry groups during that time and getting a finished document to the Office of Management and Budget on Friday was no easy task, he said.

“That is very, very fast for the government to move and indicates the priority the DOL has put on this. You almost never see a regulation or exemptions finalized that quickly,” he said. “Roughly six weeks from now, the final rules could released by the OMB, and the DOL could publish them in the Federal Register.”

The DOL has likely been coordinating with the OMB to further expedite the fiduciary rule, Reish noted. After publication, the rule would become final in 60 days, although the “applicability date,” or the deadline for complying with it, could be January 1, 2025, he said.

“My opinion is that they will want the rules to be applicable before the next president is sworn in,” Reish said. “That way, everybody will be substantially in compliance at least before the next administration takes over.”

If it turns out that President Joe Biden