Wall Street-friendly Trump may be looking to delay or repeal 'fiduciary rule'

One of the most pivotal issues of the recent presidential election was how an unregulated Wall Street is able to gain massive record profits through fraudulent and criminal behavior while wealth inequality is at all-time highs. The Obama administration had recently passed a bill, known as the “fiduciary rule,” aimed at curbing this phenomenon within the financial adviser industry. However, with the election of Donald Trump to the White House this rule may face a delay in implementation or possibly a repeal.

The rule which goes into effect April 2017 is set to put a fiduciary duty on any financial advisers giving advice to consumers. This means that a financial adviser has to make recommendations that put the interests of the client ahead of all other interests, including commissions received by the financial adviser for recommending financial products of specific companies. A majority of Americans believe Wall Street needs to be held accountable for its actions, which is what the fiduciary rule aims to do.

Donald Trump even ran his campaign on promises to reign in Wall Street. On the other hand, his cabinet picks of Wall Street insiders put serious doubt on whether or not he was being honest when making these promises. His choice for Labor secretary, Andrew Puzder, a fast food CEO, has not offered his opinion on the fiduciary rule, according to an article published by Investment News. However, Pudzer's conservative slant towards smaller government and his radical belief that there should be no minimum wage makes it highly likely he would not be looking out for the everyday person and would not likely be a friendly supporter of the fiduciary rule.

As head of the Department of Labor, which is in charge of implementing the rule, Puzder will have significant power to delay implementation of the rule. Delaying implementation is a viable alternative to a straight out repeal of the rule for Trump and the GOP, reported The National Law Journal. A repeal of the rule may also be possible, especially with the Republicans controlling both the House and Senate. GOP House leader Congressman Paul Ryan has been vociferous in his harsh criticism of the fiduciary rule in the recent past, according to an article published on TheStreet.com.

Delay or repeal of the fiduciary rule when combined with the GOP plan to privatize Social Security can put senior citizens especially at risk of being defrauded by unscrupulous financial advisers salivating over privatized, self-directed retirement accounts. Therefore, it is essential the American public voices its disapproval of any delay or attempt to repeal the fiduciary rule. Please contact your local congressional representatives and senators and let them know your concerns about the fiduciary rule. You can also sign CREDO's petition to tell Senate Democrats to hold the line and not help Republicans delay or repeal the fiduciary rule.