Is the DOL Fiduciary Rule Really So Bad?
A Trump advisor’s objections to the new standard make one good point, one mixed, and two bad.
Firing the Broadside
As populists go, the President-elect has adopted a rather unusual approach toward Wall Street. In general, he has advocated loosening its restraints, rather than the customary populist tactic of tightening them. "I am going to cut regulations massively," Donald Trump has said.
Although Trump has not directly mentioned the Department of Labor's new fiduciary rule, scheduled to launch in April 2017, there seems little doubt of his intentions. Trump advisor Anthony Scaramucci, a hedge fund managing partner, has savaged the DOL rule, calling it the "dumbest decision to come out of the U.S. government in the last 50 to 60 years." He has publicly promised that the Trump administration would repeal the rule.
John Rekenthaler does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.