A delay or repeal of the rule would put billions of retirement savings “straight into the hands of giant financial institutions,” says Senator Elizabeth Warren.
As I have written, the Obama administration – waiting until nearly the end of his term – moved to change and strengthen the language of the federal regulation protecting our retirement investments. It is known as the Fiduciary Rule.
The Fiduciary Rule – simply stated – says that those who are investing our retirement savings must act in our best interest and inform us of any conflict of interests that may arise between their profits and our retirement savings.
Naturally, the Republican Congress and Trump are against the implementation of the Obama changes that strengthen the Fiduciary Rule.
On Feb. 3, President Donald Trump issued an executive memorandum directing the secretary of labor to consider delaying or replacing the Fiduciary Rule. It was scheduled to go into effect in April.
A draft version of that memorandum called for a 180-day delay.
Since Trump’s memorandum a U.S. District judge in Dallas has denied the government’s motion to stay a legal challenge to the rule while the DOL review is in progress.
The court dismissed a lawsuit filed by the U.S. Chamber of Commerce, Securities Industry and Financial Markets Association (SIFMA) and other financial groups challenging the DOL’s authority to issue the rule.
Then on Thursday, Trump’s Department of Labor officially asked for a delay in the implementation of the rule.
In 2015, Senator Elizabeth Warren’s office investigated the incentives used by some financial services firms that put advisers’ interests ahead of ours.
Senator Warren issued an updated report Feb. 3 which addressed this continuing practice.
A delay or repeal of the rule would put billions of retirement savings “straight into the hands of giant financial institutions,” Ms. Warren wrote.