A new survey report published by Financial Engines argues
the fate of the Obama-era Department of Labor (DOL) fiduciary rule has grown increasingly
complex and uncertain since President Trump took office.
While the new president, along with Republican leadership in
Congress, have expressed a desire to dial back or wholly overturn the fiduciary
rule reforms, currently they are still very much intact. The rulemaking’s implementation
has simply been delayed,
from a previous target date of April 10 to instead take effect June 9.
It remains to be seen what path President Trump and/or
Congress may take, but Financial Engines says it is abundantly clear that
average Americans favor the implementation of new conflict of interest
protections for the retirement plan investing industry.
According to Financial Engines, fully 93% of Americans “think
financial advisers who provide retirement advice should be legally required to
put their clients’ best interest first.” In fact, more than half of respondents
(53%) mistakenly believe that all financial advisers are already legally
required to put the best interests of their clients first.
On Financial Engines analysis, these two stats taken
together should offer something of a moral imperative to advisers to be more
willing to embrace true fiduciary roles.
NEXT: Testing investor
understanding of conflicted advice