The U.S. Chamber of Commerce this week broke the relative silence of financial industry lobbying groups and called for the incoming Trump administration to take “immediate action to undo” a Labor Department investment-advice rule.
It's a stance that most assumed industry trade associations would take, but they seem to be having trouble coming up with a precise “ask” for the Trump administration regarding the DOL rule, which would require financial advisers to act in the best interests of their clients in retirement accounts.
The Chamber stepped into the void and made clear that it wants the Trump administration to put the rule at the top of its to-do list — or rather its “undo” list.
“[W]e are urging immediate action to undo the Department of Labor's Fiduciary Rule,” Chamber President Thomas J. Donohue wrote in a Dec. 12 blog post. “If enacted, it would choke economic growth, increase frivolous litigation against financial advisers and make saving for retirement more difficult for hardworking Americans.”
The Obama administration says the rule is needed to protect workers and retirees from conflicted investment advice that leads to inappropriate high-fee products that erode savings.
Initial implementation of the rule begins in April. The Trump administration faces challenges in taking it off the books.