82 FR 9675 - Fiduciary Duty Rule

Executive Office of the President

Federal Register Volume 82, Issue 24 (February 7, 2017)

Page Range		9675-9676
FR Document		2017-02656

Federal Register, Volume 82 Issue 24 (Tuesday, February 7, 2017)

[Federal Register Volume 82, Number 24 (Tuesday, February 7, 2017)]
[Presidential Documents]
[Pages 9675-9676]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-02656]




                        Presidential Documents 



Federal Register / Vol. 82 , No. 24 / Tuesday, February 7, 2017 / 
Presidential Documents

[[Page 9675]]


                Memorandum of February 3, 2017

                
Fiduciary Duty Rule

                Memorandum for the Secretary of Labor

                One of the priorities of my Administration is to 
                empower Americans to make their own financial 
                decisions, to facilitate their ability to save for 
                retirement and build the individual wealth necessary to 
                afford typical lifetime expenses, such as buying a home 
                and paying for college, and to withstand unexpected 
                financial emergencies.

                The Department of Labor's (Department) final rule 
                entitled, Definition of the Term ``Fiduciary''; 
                Conflict of Interest Rule--Retirement Investment 
                Advice, 81 Fed. Reg. 20946 (April 8, 2016) (Fiduciary 
                Duty Rule or Rule), may significantly alter the manner 
                in which Americans can receive financial advice, and 
                may not be consistent with the policies of my 
                Administration.

                Accordingly, by the authority vested in me as President 
                by the Constitution and the laws of the United States 
                of America, I hereby direct the following:

                Section 1. Department of Labor Review of Fiduciary Duty 
                Rule. (a) You are directed to examine the Fiduciary 
                Duty Rule to determine whether it may adversely affect 
                the ability of Americans to gain access to retirement 
                information and financial advice. As part of this 
                examination, you shall prepare an updated economic and 
                legal analysis concerning the likely impact of the 
                Fiduciary Duty Rule, which shall consider, among other 
                things, the following:

(i) Whether the anticipated applicability of the Fiduciary Duty Rule has 
harmed or is likely to harm investors due to a reduction of Americans' 
access to certain retirement savings offerings, retirement product 
structures, retirement savings information, or related financial advice;

(ii) Whether the anticipated applicability of the Fiduciary Duty Rule has 
resulted in dislocations or disruptions within the retirement services 
industry that may adversely affect investors or retirees; and

(iii) Whether the Fiduciary Duty Rule is likely to cause an increase in 
litigation, and an increase in the prices that investors and retirees must 
pay to gain access to retirement services.

                    (b) If you make an affirmative determination as to 
                any of the considerations identified in subsection 
                (a)--or if you conclude for any other reason after 
                appropriate review that the Fiduciary Duty Rule is 
                inconsistent with the priority identified earlier in 
                this memorandum--then you shall publish for notice and 
                comment a proposed rule rescinding or revising the 
                Rule, as appropriate and as consistent with law.

                Sec. 2. General Provisions. (a) Nothing in this 
                memorandum shall be construed to impair or otherwise 
                affect:

(i) the authority granted by law to an executive department or agency, or 
the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget 
relating to budgetary, administrative, or legislative proposals.

                    (b) This memorandum shall be implemented consistent 
                with applicable law and subject to the availability of 
                appropriations.
                    (c) This memorandum is not intended to, and does 
                not, create any right or benefit, substantive or 
                procedural, enforceable at law or in equity by

[[Page 9676]]

                any party against the United States, its departments, 
                agencies, or entities, its officers, employees, or 
                agents, or any other person.
                    (d) You are hereby authorized and directed to 
                publish this memorandum in the Federal Register.
                
                
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    Washington, February 3, 2017

[FR Doc. 2017-02656
Filed 2-6-17; 11:15 am]
Billing code 4510-23-P

$Federal Register / Vol. 82, No. 24 / Tuesday, February 7, 2017 / Presidential Documents 9675 Presidential Documents Memorandum of February 3, 2017 Fiduciary Duty Rule Memorandum for the Secretary of Labor One of the priorities of my Administration is to empower Americans to make their own financial decisions, to facilitate their ability to save for retirement and build the individual wealth necessary to afford typical lifetime expenses, such as buying a home and paying for college, and to withstand unexpected financial emergencies. The Department of Labor’s (Department) final rule entitled, Definition of the Term ‘‘Fiduciary’’; Conflict of Interest Rule—Retirement Investment Ad- vice, 81 Fed. Reg. 20946 (April 8, 2016) (Fiduciary Duty Rule or Rule), may significantly alter the manner in which Americans can receive financial advice, and may not be consistent with the policies of my Administration. Accordingly, by the authority vested in me as President by the Constitution and the laws of the United States of America, I hereby direct the following: Section 1. Department of Labor Review of Fiduciary Duty Rule. (a) You are directed to examine the Fiduciary Duty Rule to determine whether it may adversely affect the ability of Americans to gain access to retirement information and financial advice. As part of this examination, you shall prepare an updated economic and legal analysis concerning the likely impact of the Fiduciary Duty Rule, which shall consider, among other things, the following: (i) Whether the anticipated applicability of the Fiduciary Duty Rule has harmed or is likely to harm investors due to a reduction of Americans’ access to certain retirement savings offerings, retirement product structures, retirement savings information, or related financial advice; (ii) Whether the anticipated applicability of the Fiduciary Duty Rule has resulted in dislocations or disruptions within the retirement services indus- try that may adversely affect investors or retirees; and (iii) Whether the Fiduciary Duty Rule is likely to cause an increase in litigation, and an increase in the prices that investors and retirees must pay to gain access to retirement services. (b) If you make an affirmative determination as to any of the considerations identified in subsection (a)—or if you conclude for any other reason after appropriate review that the Fiduciary Duty Rule is inconsistent with the priority identified earlier in this memorandum—then you shall publish for notice and comment a proposed rule rescinding or revising the Rule, as appropriate and as consistent with law. Sec. 2. General Provisions. (a) Nothing in this memorandum shall be con- strued to impair or otherwise affect: (i) the authority granted by law to an executive department or agency, or the head thereof; or (ii) the functions of the Director of the Office of Management and Budget mstockstill on DSK3G9T082PROD with O0 relating to budgetary, administrative, or legislative proposals. (b) This memorandum shall be implemented consistent with applicable law and subject to the availability of appropriations. (c) This memorandum is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by VerDate Sep<11>2014 20:18 Feb 06, 2017 Jkt 241001 PO 00000 Frm 00001 Fmt 4790 Sfmt 4790 E:\FR\FM\07FEO0.SGM 07FEO0$

Document Created: 2017-02-07 00:27:44
Document Modified: 2017-02-07 00:27:44

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Presidential Documents
FR Citation		82 FR 9675