Financial industry expects quick action from Trump to delay DOL fiduciary rule

Lobbyists say the move could come as soon as Friday afternoon, or Monday, in the form of a directive to acting agency heads to postpone and review regulations that aren't yet operational.
JAN 20, 2017
Financial industry lobbyists on Friday were expecting quick action by the Trump administration to delay a Labor Department investment advice rule. Staff members at two trade associations said they were anticipating a move as early as this afternoon, hours after Donald J. Trump was inaugurated, or on Monday. It could come in the form of a directive from the White House to acting agency heads to delay regulations that aren't yet operational and to review them. The lobbyists spoke on condition of anonymity. The Wall Street Journal reported Thursday that the DOL rule would be among the first the Trump administration targets. Industry groups have been urging Mr. Trump to delay the rule, arguing it is too complex and burdensome and will sharply increase the cost of giving and receiving advice. “I would be very surprised if the incoming administration didn't move to address this as an early priority,” Paul Schott Stevens, chief executive of the Investment Company Institute, said in a recent interview. “The first step would be to delay implementation of the rule. That would give the department some time to reconsider it on the merits.” But Mr. Trump may not be able to stall the DOL rule without some heavy lifting. The initial implementation deadline is April 10. It became effective last June. “To delay rules that have passed their effective date without going through a notice and comment period would be a violation of the Administrative Procedure Act,” said Barbara Roper, director of investor protection at the Consumer Federation of America. Proponents of the rule, which requires financial advisers to act in the best interests of their clients in retirement accounts, say it would protect middle-class workers and retires from high-fee investment products that erode savings. In his inauguration speech, Mr. Trump appealed to middle-class Americans who he said have suffered the loss of jobs and wealth as the U.S. manufacturing base declined. “The forgotten men and women of our country will be forgotten no longer,” Mr. Trump said. Ms. Roper said attacking the DOL rule as a first order of business would belie Mr. Trump's rhetoric. “A multibillion-dollar handout for Wall Street and a violation of the rule of law on Day One?” Ms. Roper said. “So much for making America work for the forgotten man and woman.”

Latest News

'Bogged down' advisors just want to have fun (again)
'Bogged down' advisors just want to have fun (again)

Jim Cahn, of Wealth Enhancement Group, lifts the lid on his firm's partnership model, his views on RIA M&A, and the widely slept-on reason why advisors are merging into larger organizations.

Vestwell unveils new emergency savings account offering
Vestwell unveils new emergency savings account offering

The fintech firm is cementing its status in the workplace savings space with its latest ESA offering, which employers can integrate into their existing benefits package.

'Money Mimosas' and other ways to show your Valentine financial love
'Money Mimosas' and other ways to show your Valentine financial love

Wealth managers offer unique ideas for couples to grow closer emotionally and financially.

Limra research finds financial confidence on the rise among Black American workers
Limra research finds financial confidence on the rise among Black American workers

Survey findings suggest increased sense of financial security and more optimistic 2025 outlook, while highlighting employers' role in ensuring retirement readiness.

DOGE efforts sideswipe muni bonds backed by federal lease payments
DOGE efforts sideswipe muni bonds backed by federal lease payments

Falling prices for some securities within the $4 trillion state and local government debt market spotlight how the push to shrink spending is sending shockwaves across the US.

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.