Trump to Stop Obama’s Fiduciary Rule, Orders Review of Dodd-Frank
President Donald Trump will halt an Obama administration regulation, hated by the financial industry, that requires retirement advisers to work in the best interests of their clients, while the new administration reviews the rule.
The president also will order a review of Dodd-Frank Act rules enacted in response to the 2008 financial crisis, a White House official said. Trump is scheduled to issue the directives at a signing ceremony around noon on Friday following a meeting of more than a dozen top corporate executives led by Blackstone Group LP Chief Executive Officer Steve Schwarzman.
Trump’s directive stalls the so-called fiduciary rule — set to take effect in April — that the Obama administration said would protect millions of retirees from being steered into inappropriate high-cost or high-risk investments that generate bigger profits for brokers.
The two executive actions are designed to lay out the Trump administration’s approach to financial markets, with an emphasis on removing regulatory burdens and opening up investor options, said the White House official, who briefed reporters on condition of anonymity.
The orders are the most aggressive steps yet by Trump to loosen regulations in the financial services industry and come after he has sought to stock his administration with veterans of the industry in key positions. His plans are sure to face fierce criticism by Democrats who charge that Trump is intent on undoing changes designed to protect everything from average investors to the global banking system.