Trump has instructed the Department of Labor to delay an Obama-era rule that would require financial professionals who charge commissions to put their clients’ best interests first when advising them on retirement investments. The “fiduciary rule” was aimed at blocking consultants from steering clients toward investments with higher commissions and fees that can eat away at retirement savings. The rule was to take effect this month. The financial services industry argued that the rule would limit retirees’ investment choices by forcing asset managers to steer them to low-risk options.
Undoing the rule was part of a promised assault by Trump on banking rules enacted after the Great Recession. He has directed the Treasury secretary to review the 2010 Dodd-Frank financial oversight law, which he has said is a disaster. The law’s aim was to keep banks from repeating practices that many blamed for the financial meltdown.