DOL Fiduciary Rule Hangs in Balance as Labor Secretary Acosta Resigns

Acosta's resignation "will affect the development of any guidance that could be controversial or that could have significant consequences," said Fred Reish, partner at Drinker Biddle.

Labor employees "will continue to work on regulations and other guidance," Reish said. If Acosta's replacement "has an anti-regulatory approach, we may not see a new fiduciary regulation during this administration."

Labor's spring regulatory flexibility agenda said Labor would issue a notice of proposed rulemaking regarding a new fiduciary rule in December.

An earlier unveiling of a Labor fiduciary plan could be likely given the Securities and Exchange Commission's passage of its advice standards package, including Regulation Best Interest, on June 5.

Labor Secretary Alexander Acosta told lawmakers on May 1 that Labor was collaborating with the SEC as it worked on its advice-standards package, and that "based on our collaborative work, we will be issuing new rules in this area."

Preston Rutledge, head of Labor's Employee Benefits Security Administration, said on June 3 that Labor's upcoming fiduciary rulemaking would align with Reg BI.

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