Trump plans to scrap new retirement advice rules

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Proposals that would change the way retirement products are sold in the US could be scrapped under the Trump administration.

According to a Financial Times report, advisers to president-elect Donald Trump are considering stopping reforms that would see advisers who give retirement advice putting the client’s interest above their own according to a “fiduciary standard”.

US advisers are currently required to only recommend suitable products, as are UK advisers, with no formal requirement to put the client above themselves.

The changes are meant to come into force in April 2017, not long after Trump takes office in January.

Scrapping the proposals is thought to be a popular move by asset managers, providers and brokers who think consumers would see charges increase.

According to the FT, Anthony Scaramucci, a member of Trump’s economic advisory council, has said the Trump administration would introduce a “self-auditing” process for advisers.

In 2012, the UK Government muted plans to impose fiduciary duties on investment advisers as part of plans to rebuild trust in financial services, but the reforms never materialised.