The Labor Department submitted its delay proposal earlier this month. Following Monday’s approval, the Labor Department is now expected to issue a final rule allowing the postponement.
Other portions took effect June 9, including a requirement that financial advisors work in the best interest of clients when it comes to providing advice related to their retirement accounts, such as IRAs.
Supporters of the rule say it protects investors from higher-cost investments that benefit the advisor more than clients. Critics say compliance costs will end up pricing small investors out of the advice market.
The rule already has been undergoing an economic-impact review, which was ordered by President Donald Trump in February. It also remains in the crosshairs of congressional Republicans. Last month, a House committee approved a measure that would repeal the fiduciary rule and replace it with one allowing disclosures of potential conflicts of interest.