The Trump administration has no grounds for blocking the “fiduciary rule,” an Obama-era regulation that requires financial advisers to put their clients’ interests first when giving advice or selling investments for retirement accounts.
But blocking the rule remains an administration priority, no matter how arbitrary, capricious and harmful that would be. In one of his first acts in office, President Trump effectively delayed the rule’s implementation date, April 10, by issuing a memorandum that called for its review and possible rollback. The Labor Department, which has jurisdiction over the issue, could find no legal way to alter or rescind the rule, so it took effect on June 9, with one catch: The department said it would not enforce the rule until Jan. 1, 2018, ostensibly to give financial firms time to adapt. Then this month, the department requested a further enforcement delay, to July 1, 2019. The request will be considered by none other than the White House Office of Management and Budget, which vets regulation.
This is obstruction, pure and simple...
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Last year, the U.S. Department of Labor put in motion a "Best Interest" Rule that would have protected you against shifty brokers and agents. The DOL rule would've gone into effect on April 10, saving some $17 billion in unnecessary fees that eat into retirement kitties.
But the Trump Administration and securities/insurance industry have launched a feverish effort to kill the DOL Rule. It's nothing less than a war they're waging on retirement -- and it's going to cost you...
Even though the ruling powers in Washington are against you now, there's still much you can do to fight back and protect your money. Here are five things you can do...
Most will know that the DOL has applied for a lengthy delay of the implementation of the full fiduciary rule. The existence of the delay was first known through disclosure in a court case against the DOL, but it was soon confirmed by the Office of Budget and Management on their website. Advocates of the rule have been outraged by the delay proposal, while opponents have embraced it. One of the key reasons why is that experts say the length of the delay is highly significant in that the DOL wants a great deal of time, which indicates that it may be seeking major changes. The length also seems to improve the chances that the DOL will work in tandem with the SEC to craft a new comprehensive package.
The Department of Labor (DOL) is in charge of programs and laws that cover all facets of employment and work affecting 125 million workers and 10 million businesses [but] has at times lost its way in helping the working man and woman, often during Republican administrations that have favored the interests of big business...
The Department of Labor (DOL) was established in 1913 in response to years of lobbying by organized labor for a voice in the federal government that would improve the welfare of working people... The first Secretary of Labor was appointed by President Woodrow Wilson, who selected Scottish-born Congressman William B. Wilson, a founder and former secretary-treasurer of the United Mine Workers of America.
WHAT CAN I DO?
Back in March, Christopher D. Cook warned against giving President Trump’s labor secretary nominee, Alexander Acosta, a pass for not being as obviously objectionable as Andrew Puzder, citing his deference to Trump’s decision to roll back the fiduciary rule as one of many reasons to keep close tabs on his actions.