President Trump today issued two orders to reevaluate several provisions of the Dodd-Frank Act and the Department of Labor’s controversial fiduciary rule. An executive order outlines seven core principles for regulation of the financial system: promoting independent consumer choices, preventing bailouts, fostering economic growth, promoting international competitiveness, advancing U.S. interests in international negotiations, tailoring regulations and ensuring regulatory accountability. It directs the treasury secretary to meet with the heads of the member agencies of the Financial Stability Oversight Council to conduct a thorough review of how existing regulations and policies support or inhibit these core principles, with a report on the findings due to the president in 120 days.
A separate memorandum targets the fiduciary rule, which expanded the definition of “fiduciary” under the Employee Retirement Income Security Act and the Internal Revenue Code. The memo calls for the secretary of labor to review thoroughly the rule to examine its effect on Americans’ ability to access financial advice. The rule is scheduled to take effect in April, but the acting secretary said DOL “will now consider its legal options to delay the applicability date as we comply with the president’s memorandum.” The American Bankers Association has strongly advocated for changes to the fiduciary rule, as well as a longer implementation period to give banks of all sizes time to comply.
ABA President and CEO Rob Nichols welcomed Trump’s action to bring much-needed regulatory relief for banks, helping them to better serve their customers and communities. “We appreciate the administration’s support for pro-growth policies so banks can go even further in helping their communities and our economy thrive,” Nichols said. “A sensible and careful review of Dodd-Frank and other financial regulations can and should strengthen those goals while unleashing the power of the banking industry — from small towns and communities to our nation’s financial centers — to fuel the increase in economic prosperity that we all seek.”
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