A new federal rule aimed at protecting investors from self-serving advice from brokers and other advisers kicks in Friday.
The so-called "fiduciary" rule was finalized during the Obama administration. It requires retirement investment advisers — the folks telling you what you should do with your 401k plans or annuities — to suggest investments that are best for you, regardless of what fees or commissions the adviser might miss out on.
But don’t let your guard down just yet when someone pitches that “can’t lose” investment fund or whatever with high fees or onerous restrictions.
According to an order issued by the federal Labor Department, it doesn't plan to enforce the new fiduciary rule before January 1, 2018.
By then, the rule might be gone or de-fanged. It’s one of the Obama-era regulations that President Donald Trump has in his cross-hairs for elimination.
The delaying action comes after Trump signed a memorandum in February directing the Labor Department to re-examine the rule to see whether it harms consumers’ ability to get the type of investment advice they need.
Labor Secretary Alexander Acosta recently said he concluded that he has to let the rule go into force on June 9 out of "respect for the rule of law." But he said the Labor Department will continue looking at the rule during its phased implementation period to see if it needs to be changed.
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