Trump Trying To Stop Protections For Retirement Savers
The Trump administration is trying to delay the implementation of an Obama-era rule that protects retirement savers and investors being taken advantage of by their investment advisers.
The fiduciary rule has been strongly opposed by the financial industry and Republicans. And now the Trump administration is trying to delay it’s implementation.
The fiduciary rule requires retirement advisers to act in the best interest of their clients. For example, the Obama-rule would prevent advisers from selling you a fund that earns them a bigger commission over a fund that would be better for your portfolio. Of course, Wall Street hates the fiduciary rule because fleecing their customers is a time honored tradition of the financial industry.
On Wednesday the Labor Department proposed to delay implementation of the fiduciary rule.
The fiduciary rule is strongly supported by Democrats including Elizabeth Warren. The rule aims to prevent the kinds of conflicts of interest when financial advisers try to sell their clients on investment products that are not in their best interest but that the adviser receives higher commissions for.
The announcement Wednesday by the Labor Department will push back the implementation of the fiduciary rule by 60 days, presumably so officials can determine how to make it more palatable to the financial industry. Without the delay, the rule would have gone into effect on April 10.
Trump signed a memo last month asking the Labor Department to review the fiduciary rule.
“Millions of Americans who are trying their best to save and invest for retirement will be hurt by today’s proposed delay,” David Certner who is legislative counsel at the AARP, said in a statement.
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