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Barry Ritholtz

Wall Street Should Put All Clients First

The fiduciary rule requires brokers to avoid giving conflicted advice to retirement savers. The Trump administration should leave it in place.
Thinking of you.

Thinking of you.

Photographer: Joanne Rathe/Boston Globe/Getty images

President Donald Trump has asked for 180-day review of the U.S. Department of Labor’s new rule requiring that those who give investment advice on retirement savings accounts put client interests ahead of their own. It is, of course, reasonable to assume that this is the prelude to the new administration's effort to kill the so-called fiduciary rule.

If there is an actual shortcoming  to the rule, it is this: The fiduciary rule shouldn't apply just to retirement accounts; it should apply to all investment accounts, no matter the size and type. It's probably doubtful that Trump's review will come to this conclusion.