The Argument that a Delay in the Implementation of the Labor Department's Fiduciary Rule will Harm Investors

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According to a recently published article in OnWallStreet by Professors Christine Lazaro and Benjamin P. Edwards, a delay in the implementation of the Labor Department's Fiduciary Rule will harm investors.

"The Office of Management and Budget's notice explains that the 180-day delay the Labor Department initially proposed would have reduced investor gains by $441 million in the first year and $2.7 billion over a decade. The current proposed 60-day delay will still hurt investors, reducing gains in the first year by $147 million and $890 million over a decade. Those figures understate the stakes because they assume that the rule will go into effect immediately after the delay. Cutting the rule entirely will cost investors billions more."

Lazaro and Edwards state, "Wall Street continues a doomed fight for brokers' right to give bad advice to retirement savers, all in the hopes of propping up earnings. After three stinging courtroom defeats, the industry procured a presidential memorandum directing the Labor Department to review its ban on giving disloyal advice to investors."

Here is a link to the full article.

Law Offices of Brent A. Burns, Esq.

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