Fiduciary Rule Under Trump- Jeopardy?

“It’s really hard to predict what a Trump administration would look like on these

issues because there are so few specifics out there.”

Donald Trump’s upset victory sets the stage to overturn signature aspects of President Obama’s legacy on financial matters, including the Department of Labor’s fiduciary regulation, which is set to be phased in starting in April.

“The rule could be in jeopardy,” says Barbara Roper, director of Investor Protection at the Consumer Federation of America, an investor advocacy group.

Reversing the fiduciary standard on retirement accounts, which would upend firms’ costly efforts to comply with the regulation, is not a foregone conclusion. Although Trump stated his opposition repeatedly to Obama’s policies, he often refrained from spelling out his proposals in detail during the campaign.

The Trump campaign says on its website it would put a moratorium on new regulations and require federal agencies to prepare a list of all regulations, from most to least critical. “Least-critical regulations will receive priority consideration for repeal,” the website says.

“It’s really hard to predict what a Trump administration would look like on these issues because there are so few specifics out there,” Roper says.

Fiduciary rule ‘in jeopardy’ under Trump | Financial Planning

Rolling back the regulation would upend the plans of many brokerage and advisory firms, which have been spending heavily to prepare their systems and advisers for it.

Merrill Lynch, which has said it will cease offering commission-based IRAs to comply with the rule, has even created a fiduciary-based advertising campaign: “This is a positive step forward for the industry and great news for investors. At Merrill Lynch we support it wholeheartedly.”

About Jeffrey Berson

40 years in and around the industry has made Insurance a part of my DNA. I have had the pleasure of working with and for some of the greatest minds in our industry. My "Bersonal" View is an attempt to capture some of the best ideas, the best concepts and the best practices in a way that can lead to success for others. It will certainly be my point of view, so please...don't take it "Bersonal".
This entry was posted in Bersonal Posts. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: