Over the past decade, the way that millions of Americans invest for retirement has changed. Money has fled from many high-priced investment products. Companies that built their businesses on armies of commission-based salespeople are scrambling for cheaper ways to deliver advice. A 500-word memo signed on Feb. 3 by President Trump may slow this trend, but it’s unlikely to reverse it.
Trump ordered the U.S. Department of Labor to reconsider the fiduciary rule, a regulation set to go into effect in April. It requires financial advisers to put their clients’ interests first when handling retirement accounts. The U.S. retirement market is about $25 trillion in assets, the Investment Company Institute says, so the rule goes right to the heart of the advice business. Many on Wall Street hate it.
Source: Bloomberg News