President Donald Trump on Friday signed an executive order telling the Department of Labor to halt implementation of its fiduciary rule, which is set to take effect April 10. Another executive order that was signed will roll back the Dodd-Frank Wall Street Reform and Consumer Protection Act.
ThinkAdvisor first reported Trump’s coming order to halt the fiduciary rule’s implementation on Tuesday.
In the directive, signed at 1:18 p.m. on Friday, Trump ordered the DOL to review and defer implementation of its fiduciary rule. He signed the order with Rep. Ann Wagner, R-Mo., saying she was a “a special person” who had been “working on this for a long time.”
White House National Economic Council Advisor Gary Cohn said on CNBC that he doesn’t “think you protect investors by limiting choices; you need to give them [investors] the proper sources to accumulate wealth.”
The order on Dodd-Frank will direct the Treasury secretary to examine what can be done on the executive side regarding curtailing the law as well as the Volcker Rule, according to published reports.
Thomas Donohue, president and CEO of the U.S. Chamber of Commerce, said Friday that the Chamber is pleased Trump took action to halt the rule as it “would have made it more difficult for Americans to save for their futures.” He added that the “flawed fiduciary rule’s rushed implementation would have jeopardized access to retirement advice and choice while its severe consequences and compliance burdens would have made it harder for small businesses to offer retirement plans.”
DOL’s “accelerated implementation deadline,” he continued, “was driven by political motives rather than practical reality.” The Chamber, he said, looks forward to “swift action” from DOL in putting this delay into effect and re-evaluating matters of policy and law.”
The Chamber is among the plaintiffs, including the Securities Industry and Financial Markets Association and the Financial Services Institute, that sued the DOL over its fiduciary rule in a Texas court. Judge Barbara M.G. Lynn, the judge presiding over the Texas case, said Wednesday that she would issue a ruling by Feb. 10.