"Financial advisors should act in their client's best interest, not their own," said Attorney General Schneiderman. "The Fiduciary Rule is critical to protecting New Yorkers – and Americans across the country – who are working to save for their retirement. Yet President Trump has delayed this commonsense rule – and his Labor Secretary nominee's evasive answers during his confirmation hearing are cause for concern that the administration will kill it altogether. It's high time for the Trump administration to put the interests of hard-working Americans first."
Read Attorney General Schneiderman's full letter to the Acting Secretary of Labor here.
More and more of today's workers turn to investment accounts that would be covered by the Fiduciary Rule, in order to save for their retirement. If the Trump Administration continues to delay implementation of the rule or blocks the rule altogether, the impact on workers saving for retirement would be costly.
The Department of Labor itself has reported that investors could lose $147 million this year and $890 million over ten years because of President Trump's 60-day delay in implementation. If the Trump Administration kills the rule, a worker whose retirement savings are held in a retirement plan governed by ERISA (such as a 401(k)), who then rolls his or her retirement savings into an IRA, could lose up to 23 percent of the value of those savings over 30 years of retirement due to conflicted advice. Furthermore, conflicted advice given for mutual fund investments alone could cost IRA investors between $95 billion and $189 billion over the next ten years.
The Fiduciary Rule was developed following broad academic and market research, economic analysis, and public comment. The final rule followed multiple proposals and consideration of the extensive public record and was carefully crafted to protect investors without placing undue burdens on the financial services industry.