May 23 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
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