May 23 (Reuters) - The “fiduciary rule” aimed at preventing brokers from recommending inappropriate retirement investments, will take effect on June 9 with no further delays, U.S. Labor Secretary Alexander Acosta said on Monday in an opinion piece in the Wall Street Journal.
Acosta said in his opinion piece that there is "no principled legal basis to change the June 9 date while we seek public input." on.wsj.com/2q57jwk
Calling the fiduciary rule a “controversial regulation”, Acosta wrote that while courts have upheld the rule as consistent with Congress’ delegated authority, the rule may not align with Trump’s “deregulatory goals”.
Acosta added the rule will go into partial effect on June 9 and full implementation will go into effect on Jan. 1 next year.
The Labor Department’s fiduciary rule requires firms to eliminate any conflict of interest, such as certain sales incentives for brokers who are advising clients on their retirement savings.
Some Democratic Senators on Friday raised concerns over the possibility that the Trump administration will permanently shelve the fiduciary rule.
Heavily criticized by Wall Street and Republicans for potentially raising the cost of investment advice, the rule has faced a rocky time becoming effective, with Trump last month delaying its enactment date, originally April 10, for 60 days. Trump has also ordered a review of the rule. (Reporting by Kanishka Singh in Bengaluru; Editing by Sunil Nair)