Wall Street Probably Too Lazy To Accept President Trump’s Gifts

Or how Wall Street learned to just shrug off the fiduciary rule.

Of all the financial-services regulations jointly loathed by Congressional Republicans and the incoming Trumpistas, none is bathed in as much vitriol as the new fiduciary rule—and that’s saying something. Why is the fiduciary rule so hated? Well, because it would force brokers and other players in the retirement industry to put their clients’ interests ahead of their own, and there’s no fun or profit in that. According to the outgoing administration, there’s $17 billion worth of fun and profit under the current system, and even if that’s as exaggerated as the industry says, clearly there’s something worth fighting for.

Trump.Burning Money

But not too hard. As with Dodd-Frank, the zeal for robber-baron-era capitalist deregulation founder and eventually sink on the shoals of institutional inertia.

Even if the rule is killed, some said compliance efforts that have already been under way and broader industry trends mean financial-advice givers will adhere to its requirements. Firms affected by the rule said speculation over the rule’s fate hasn’t altered changes they have already set in motion….

“The rule is final. So we are moving forward with the understanding that the rule is going into effect on April 10,” said a spokesman for LPL Financial Holdings Inc.

How the ‘Fiduciary’ Rule Could Live On [WSJ]