"The final version of a memo sent by President Donald Trump on Friday to the Department of Labor directs the agency to review a sweeping investment-advice rule.
The Department of Labor will now consider its legal options to delay the applicability date as we comply with the president's memorandum,” Acting DOL Secretary Ed Hugler said in a statement.
The (fiduciary) rule requires financial advisers to act in the best interests of their clients in retirement accounts."
Read the full article from investmentnews.com here.
This was an unsurprising, yet stunning move to reverse the landmark Obama administration regulation of financial advice on retirement assets, which sought to protect investors from exorbitant fees and questionable advice.
A provision to delay implementation of the original rule until October of this year was included in a preliminary version of the Executive Order, but was ultimately removed for unclear reasons. Commentary from White House officials, and the President himself, however, suggests that diminishing or removing the regulation is the ultimate objective.
“This is like putting only healthy food on the menu, because unhealthy food tastes good but you still shouldn’t eat it because you might die younger.”
We view this as bad news for retirees, and a terrible analogy. I’m sure there are many of you out there that can enjoy a burger or chicken parm every now and again, but nobody out there enjoys paying more for advice meant to be “suitable”.
The good news is firms like True Link Financial always hold themselves to a fiduciary standard and, as a matter of practice and principle, provide financial products and services that are in a client’s best interest. You can be certain that no matter the current administration's position on regulating retirement advice, True Link will hold its clients’ interests above its own every step of the way.
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