New York, NY – February 3, 2017 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.nasd-law.com, comments on President Trump’s executive orders targeting the Department of Labor’s (“DOL”) retirement advice rule and Dodd-Frank Wall Street Reform. President Donald Trump will be signing executive orders today instructing the DOL to halt implementation of its retirement advice rule and review Dodd-Frank Wall Street Reform.
The DOL’s retirement advice rule, also known as the fiduciary rule, was issued in 2016 by former president Barack Obama’s administration and is scheduled to take effect in April 2017. The DOL’s rule was created to reduce potential conflicts among financial advisers who provide retirement advice to their clients. Under the rule, financial advisors are required to act in their client’s best interest, or as fiduciaries, when providing investment advice to their clients regarding individual retirement accounts and 401K plans.
According to founding partner of K&T, Lawrence L. Klayman, “The DOL rule establishes a fiduciary duty for all retirement accounts, with a provision for certain transactions, including variable annuities and equity-indexed annuities which provide for a ‘Best Interest Contract’ exemption. President Trump’s executive order seeks to undermine and potentially eliminate the safeguards contemplated by the DOL’s rule, which was implemented to protect investors.” Mr. Klayman continues, “Trump’s actions today seek to roll back all the progress that was made since the financial crisis, and is terrible news for investors.”
President Trump’s executive order geared towards dismantling the 2010 Dodd-Frank Wall Street reform law is consistent with promises he made during his presidential campaign. Mr. Klayman explains, “Dodd-Frank was the most significant regulatory overhaul of Wall Street in decades and this executive order is an attempt to eliminate the safeguards instituted after the financial crisis of 2007-2009, a crisis many investors still haven’t recovered from.”