Elizabeth Warren, a known liar with high cheekbones is at it again. She claims that financial institutions support the new fiduciary rule. She bases this on the fact that the institutions have said they will comply with the law. There is a huge gap between not breaking the law and approving of it. The truth is financial institutions are universally opposed to the fiduciary rules as currently written.
For one thing to fully comply with the ridiculous rule will cost 31.5 billion dollars a year. Secondly, it will force small investors out of the market because it mandates that compensation be fee based and not commission based. What this does is force the less wealthy people trying to plan their retirement out of the advisory business. Basically, it will save large liberal investors huge bucks a portion of which they will kickback to the democrats while leaving the little guy to fend for themselves.
Warren concluded her letter,
“The overwhelming voice of financial firms is clear: they support the goals of this rule; they have invested in this rule; they have planned for this rule; and they will be ready by the April deadline.”
Jon Berlau, a senior fellow at the Competitive Enterprise Institute explodes that myth:
“Now Warren is engaging in similar tactics by writing letters to brokerage firms asking if they will be in compliance with the fiduciary rule when it goes into effect. She is pointing to their affirmative answers—firms generally comply with laws rather than risk penalties—as evidence that they are fine with the fiduciary rule and there is no need to delay or rescind it.”
Former Congressman Kenneth E. Bentsen, Jr. dispelled Warren’s assertion that financial firms support the fiduciary rule, saying:
Over the last several days there has been a fair amount of chatter around the Department of Labor’s pending fiduciary rule, which we believe could make retirement saving harder for many Americans. I’d like to set the record straight. … First, the industry has been working diligently over the past eighteen months to prepare to comply with the rule before it becomes applicable on April 10, 2017. Our member firms have undertaken this effort not because we agree with the rule, either in whole or in part, but rather if it’s the law, we comply. The industry will endeavor to undertake what its regulators task it to do, but that doesn’t mean the rule is without flaws (it isn’t), or that the implementation timeline wasn’t realistic (it wasn’t), or that the implementation timetable demanded by the rule won’t have consequences (it will).
President Trump is considering either dumping the new regulation or rewriting it to protect small investors.