GAO Asked to Investigate Impact of DOL Fiduciary Rule

"In the past year, DOL appears to have done little, if anything, to warn retirement savers that they are now vulnerable to professionals who, according to DOL, have no obligation to put their clients' interests before their own," write Sen. Patty Murray, D-Washington, and Rep. Bobby Scott, D-Georgia, the ranking member and chair, respectively, of committees that oversee retirement policy and the Labor Department.

The Fifth Circuit's ruling created "uncertainty and confusion" for the financial services industry, the lawmakers said. Ironically, critics of the rule alleged it sowed confusion before it was overturned.

Retirement plan providers spent considerable assets to comply with the rule before it was vacated. The lawmakers are asking the GAO to analyze how those compliance efforts affected product lines, compensation models, and the impact those changes had on sales and revenue.

They also want to know how much was spent on compliance, what the overall impact was on retirement investors, and whether firms that changed to a fiduciary model before the rule was overturned continued to operate under the new model after the Fifth Circuit's decision.

The scope of the requested inquiry is substantial, and will undoubtedly required extensive coordination with industry stakeholders.

A 2013 GAO report on 401(k) plans and IRA rollovers came after a two-year examination.