The Office of Management and Budget hopes to publish a crucial exemption that would permit independent marketing organizations to sell under the new fiduciary rule by the end of next week.
OMB wants the exemption enabling IMOs to serve as financial institutions published by the inauguration of President-elect Donald J. Trump, said an attorney close to the proceedings.
“My reading of the tea leaves is that the DOL will move heaven and earth to get it out of OMB and get it published by Jan. 20, but then what happens to it who knows,” said Bruce Ashton, a lawyer with the firm Drinker Biddle & Reath, which represents many IMOs before the DOL.
Regulators appear to be setting guidelines around IMO sales volumes, business history and precedent, reserving minimums and to a lesser extent, adequate errors and omissions protection coverage. But the regulators could settle on a mix of all three, or favor some criteria over others.