WASHINGTON Feb 3 U.S. President Donald Trump on
Friday will direct the Labor Department to delay implementation
and review a rule designed to prevent conflicts of interest when
advisers give retirement advice, a senior White House official
"We think that they have exceeded their authority with this
rule and we think this is something that is completely
overreaching," the official told reporters at a briefing on
Trump has pledged to sharply reduce U.S. regulations, which
he says have harmed American businesses.
The retirement advice rule was issued by the Obama
administration and was set to take effect in April. It has been
staunchly opposed by the financial services industry.
Opponents of the rule argued that the rule would result in
high costs that will ultimately make small accounts
While some lawsuits were filed against the rule, companies
like Bank of America Corp's Merrill Lynch and Morgan
Stanley had announced plans to cooperate with the rule.
The Labor Department had estimated that it could cost firms
as much as $31 billion over the next decade to comply.
Trump's memo will ask the Labor Department to determine
whether the rule should be revised or whether it should be
scrapped altogether, the official said.
Trump will also sign an order on Friday that will ask the
Treasury secretary work with other regulators to determine what
the administration can do to fix issues with measures issued
under the 2010 Dodd-Frank Wall Street reform law.
Earlier this week during a meeting with business owners,
Trump described the reform law as "a disaster."
"There are quite a few things that we could do on Dodd-Frank
... that we think will have fairly immediate and dramatic
impact," the official said, including personnel changes at
regulatory agencies and additional executive orders.
(Reporting by Ayesha Rascoe; Editing by Lisa Shumaker)