Saturday, February 4, 2017

Here's a copy of the executive order Trump signed on Americans' retirement money

The White House has just released a copy of the executive order that President Donald Trump signed earlier Friday on the fiduciary rule.
The fiduciary rule, which the Department of Labor passed last year, intended to prevent financial advisers from giving conflicted advice to retirement savers. The rule had been set to go into effect this April.
The executive order gives power to the Secretary of Labor to rescind or revise the rule.
In the executive order, Trump writes that the fiduciary rule "may significantly alter the manner in which Americans can receive financial advice, and may not be consistent with the policies of my Administration."
Trump's order directs the Secretary of Labor to "prepare an updated economic and legal analysis" of three areas:
  1. whether the rule, anticipated to be implemented in April, has "harmed or is likely to harm investors due to a reduction of Americans' access to certain retirement savings offerings, retirement product structures, retirement savings information, or related financial advice;"
  2. whether the rule has disrupted the retirement advice industry "that may adversely affect investors or retirees"
  3.  and whether the rule is " likely to cause an increase in litigation, and an increase in the prices that investors and retirees must pay to gain access to retirement services."
If any of those three points are met, or if the rule is found to hurt Americans' ability to gain access to retirement information and financial advice, the Secretary of Labor must rescind or revise the rule, according to the order.

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