With a President Joe Biden in January, expect some major changes with the Department of Labor.
However, there might be a race with certain rules. Any rules that have not been published in their final version in the Federal Register within 60 days of the inauguration, which is scheduled for Jan. 20, can be reversed by Congress and the Biden administration can freeze progress on any proposed rules that have not been finalized.
The DOL’s finalized rule, which targets the use of ESG funds in retirement plan investments, would require a lengthy rulemaking process to reverse. Assume that the current DOL will race against the clock to finalize the proxy voting and investment advice rules. Assume if the new, new fiduciary rule isn’t finalized, a Biden administration will try a new fiduciary rule of their own.