The Department of Labor is delaying the start date of a rule that would focus on conflicts of interest in retirement investing, according to the Washington Examiner.
The rule would have required investment advisers and brokers who work with tax-privileged retirement accounts such as IRAs (individual retirement accounts) to act in the best interests of their clients.
Former President Barack Obama and other Democrats saw the rule as vital to keep some advisers from gaining kickbacks from financial products that came with high fees and cost investors billions, according to the Obama administration.
Republicans said the rule would make it more difficult for those with middle incomes to get retirement advice.
"We commend the Department of Labor for its swift action to protect retirement savers by issuing a notice of proposed rulemaking to delay the fiduciary rule, which will help ensure all Americans have access to the advice and choices needed when saving for their future," Thomas Donohue, head of the U.S. Chamber of Commerce, said, the Examiner reports.
As one of his first acts when taking office, President Donald Trump told the Labor Department to review the rule.
Currently, the department does not have a leader. Trump's first choice for secretary, Hardee's and Carl's Jr. executive Andy Puzder, withdrew from consideration in February amid a number of controversies.
The Examiner reported that the Senate has not yet vetted Trump's choice to replace Puzder, law school dean Alexander Acosta, a former assistant attorney general for George W. Bush.
© 2024 Newsmax. All rights reserved.