Chamber to Trump: Dump DOL Fiduciary Rule

By John Hilton

The U.S. Chamber of Commerce reminded President-elect Donald Trump Monday that it would like to see the Department of Labor fiduciary rule go away soon into his administration.

In a blog post titled “Fighting Government’s Fourth Branch,” President and CEO Thomas J. Donohue re-iterated that elimination of the fiduciary rule remains a top priority for the chamber.

“The Chamber is already working with transition officials to identify priority areas where relief is most urgently needed,” he wrote.

“For example, we are urging immediate action to undo the Department of Labor’s Fiduciary Rule. If enacted, it would choke economic growth, increase frivolous litigation against financial advisers, and make saving for retirement more difficult for hardworking Americans.”

Trump ran on a vow to dismantle the Obama regulatory scheme, but so far, the focus has mainly been on the Dodd–Frank Wall Street Reform and Consumer Protection Act.

Trump has yet to say anything about the DOL fiduciary rule, which holds anyone working with retirement accounts to a “best interest” standard that includes legal liability.

Anthony Scaramucci, advising Trump on financial matters, has said the president-elect supports repeal.

Last week, Trump named fast food CEO Andrew Puzder as his secretary of labor nominee. Puzder is ardently anti-regulation, but also has not commented on the fiduciary rule.

The biggest threat to business and industry comes from regulations, Donohue wrote, calling federal agencies “the fourth branch of government.”

“The power of these agencies has seen unbridled growth over the last eight years,” he wrote. “With the new administration and Congress, we have an extraordinary opportunity to reverse that growth and modernize the entire regulatory system.”

Meanwhile, the U.S. Chamber continues fighting the DOL in court. The chamber is the lead plaintiff in a consolidated lawsuit in District Court for the Northern District of Texas.

Judge Barbara M.G. Lynn held a preliminary hearing Nov. 17 in Dallas, but has yet to rule on the request for a preliminary injunction.

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected].

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.