Richmond Times-Dispatch recently published an article summarizing two executive orders signed by President Trump. One of them directs the Department of Labor to delay implementation of the fiduciary rule, a rule JoycePayne Partners strongly supports. In the article, Michael shares his thoughts on why the rule would be beneficial for financial consumers.
Excerpt from “Trump orders review a 2010 financial oversight law and of the ‘fiduciary rule’”. Richmond Times-Dispatch. February 3, 2017.
Trump also signed a presidential memorandum Friday that instructs the Labor Department to delay implementing the “fiduciary rule,” an Obama-era rule aimed at blocking financial advisers from steering clients toward investments with higher commissions and fees that can eat away at retirement savings.
The rule, which was set to take effect in April, will be delayed for 90 days while it’s reviewed.
Critics argue the rule limits retirees’ investment choices by forcing asset managers to steer them to the lowest-risk options.
However, Michael Joyce, president of JoycePayne Partners, a financial planning firm in Richmond, said he supports the fiduciary rule and considers the decision to delay it “misguided.”
“I see nothing wrong with acting in the best interests of financial consumers rather than the less stringent ‘suitability’ standard where an investment advisor can put his or her interests first as long as investments are ‘suitable,’ ” Joyce said.
Joyce said “entrenched incumbents” have opposed the rule to restrict competition, and he thinks that the enhanced disclosure “will actually bring down costs for financial consumers who participate in retirement plans.”