Stricter rule won’t be delayed on financial advisers’ duties

WASHINGTON — The Trump administration is allowing to go forward an Obama-era rule that puts stricter requirements on professionals who advise retirement savers on their investments. But it’s leaving open the possibility that deep changes to the rule will still be made.

Wall Street and Republican lawmakers have been pushing against the so-called “fiduciary” rule, which requires that financial pros who charge commissions put their clients’ best interests first when advising them on retirement investments. President Donald Trump in February told the Labor Department to delay implementing the rule, due to

be phased in starting June 9.

But Trump’s new labor secretary, Alexander Acosta, said Tuesday the department has decided not to delay the rule while it seeks public input on how to change it.

“Respect for the rule of law leads us to the conclusion that this ( June 9) date cannot be postponed,” Acosta wrote in an op-ed piece in the Wall Street Journal. “Trust in Americans’ ability to decide what is best for them and their families leads us to the conclusion that we should seek public comment on how to revise this rule.”

Americans have about $14 trillion in retirement savings — in 401(k) retirement accounts, other defined-contribution plans such as federal employees’ plans and in IRAs. Supporters of the fiduciary rule see it as key to guaranteeing the integrity of the advice they get on where to invest it. The aim of the rule, put in by the Obama administration about a year ago, was to prevent financial advisers from steering clients toward investments with higher commissions and fees that can chip away at retirement savings.

But the financial industry has argued that the rule would limit retirees’ investment choices by forcing advisers to steer them to low-risk options.

Consumer advocates greeted Acosta’s announcement, which appeared as a departure from a string of moves in recent months by Republicans to ease regulations.