Labor Nominee on the Fiduciary Rule

WSJ Wealth Adviser Briefing: Labor Nominee on the Fiduciary Rule

By Brian Hershberg

The Wall Street Journal

Mar 23, 2017 5:30 am ET

After Alexander Acosta, the Labor Department secretary nominee, spoke at his Senate confirmation hearing Wednesday, we learned that, if confirmed, he would closely follow President Donald Trump’s order to review the fiduciary rule.

That means he would pay particular attention to reviewing the retirement-advice rule with an eye toward the administration’s financial regulatory principles that “empower Americans to make independent financial decisions and informed choices in the marketplace, save for retirement, and build individual wealth.”

“The executive action directs the secretary of Labor and the Department of Labor to repeal or revise the fiduciary rule if any of the criteria laid out in that executive order is found,” Mr. Acosta said. “So that criteria really regulates and determines the Department of Labor’s approach to the fiduciary rule.”

Fiduciary-rule proponents weren’t shrinking violets during the hearing. Sen. Elizabeth Warren (D., Mass.), a vocal backer of the rule, pressed Mr. Acosta on his commitment to retirement savers.

“How committed are you to protecting the American investor?” Ms. Warren asked him.

“If the question is do I think it’s important to protect the American retiree, absolutely,” Mr. Acosta said. “I understand that particularly with the demographic changes that we are seeing, retirees are shifting from 401(k)s to IRAs.”