Some recently purposed deregulations would hurt investors
To the Editor:
As you all know, President Donald Trump has been busy during his early days in office signing document after document, doing away with a number of regulations.
Now some of these actions are justified. However, there is one rule he wants to eliminate that would hurt millions of investors.
The rule, H.R. 1090, says an investment company must act in the best interests of its clients. Now, who are their clients? They are the millions of people in this country who have 401Ks and IRAs. What this rule simply states is that investment and brokerage firms must act as a fiduciary for their clients.
In other words, they must look out for their clients’ interests, and not their own.
During the campaign, the president raked Wall Street brokers over the coals for taking advantage of the small investor. Now he wants to do away with this rule. My question is, what changed? He is certainly not looking out for the safety of the small investor in this case.
Yes, as I’ve said, there are some regulations that could, and should, be changed, but rule H.R. 1090 is not one of them.