Financial advisers now have until July 2019 to fully comply with the new fiduciary rule. This requires advisers to recommend investments best for their clients, rather than funds that carry high fees or inappropriate holdings that are more profitable for the financial firm. This is reported by nj.com in its recent article, “Trump adds new delay to Booker-backed rule designed to help retirees.”
The rules became effective June 9 and were supposed to be fully in place by January 1, 2018. The Labor Department said it would look at public comments and consider changes to the new regulations.
Senator Cory Booker joined then-President Obama at a press conference to propose new rules to protect workers against conflicts of interest among some financial advisers.
"Enough is enough," Booker said at the time. "It's time to finally enforce these rules and ensure that every financial advisor prioritizes their clients' interests over their own."
"Those financial advisers more concerned with their bottom line than with helping customers, will now have 18 more months to ignore new consumer-friendly rules that protect Americans' retirement savings from bad investment advice and hidden fees," Booker said.
Then-candidate Trump attacked Wall Street during his presidential campaign, but still put the new rules on hold while his administration reviewed them.
Labor Secretary Alexander Acosta said the president had no legal basis to delay the regulations from taking effect beginning June 9, even as the agency continued its review.
Many in the financial industry were pleased with the latest announcement.
"While the Department of Labor works to address significant concerns with the rule, the delay will help provide certainty to investors and avoid confusion and cost associated with continued piecemeal delays," said Kenneth E. Bentsen Jr., president and chief executive of the Securities Industry and Financial Markets Association.
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Reference: nj.com (November 28, 2017) “Trump adds new delay to Booker-backed rule designed to help retirees”
