DOL will not enforce fiduciary rule after appeals court decision, but firms for now are sticking with their existing sales policies.
Stage is set for a determination on the controversial rule at highest level following a split decision Thursday in a Texas appeal court that vacates the Labor Department rule.
Files to delay effective date of best-interest contract and other controversial and potentially costly requirements to July 2019 from January 2018.
Opponents as well as critics of the original rule lament the ongoing uncertainty.
Edward Jones reverses hard stop on commission-based retirement fund sales while DOL Secretary Acosta presses ahead on possible reworking of Obama administration rule.
Firm will allow commission accounts but will suspend grid-based payouts.
Andy Saperstein, co-head of the firm’s Wealth Management unit, said the rule has sped up the move to more profitable fee-based assets.
Industry trade groups and consumer advocates focus on the rule’s enforcement mechanism.
Industry executives from giant firms to midgets say they and their brokers are struggling with what’s to come two weeks before the fiduciary rule becomes effective.