It’s official – US President Donald Trump has signed off on two executive actions to kick off his promised reform of financial regulation, one taking aim at the Dodd-Frank law passed in response to the financial crisis and another concerning financial professionals’ advice to clients on their retirement savings.
“Today we are signing core principles for regulating the United States financial system,” said Mr Trump.
The first action outlines “guideline principles that sets the table for a regulatory system that mitigates risk, encourages growth and more importantly protects consumers,” White House press secretary Sean Spicer said in a briefing before the signing, during which he called Dodd-Frank a “disastrous policy.”
The so-called fiduciary rule called for financial advisors to act in their clients’ best interests when giving advice on retirement investments. The executive action calls for the US Labour Department to review the rule, which was slated to take effect starting in April, according to Mr Spicer.
“We desperately need to overhaul how we approach financial regulation,” Mr Spicer said.
Bank stocks and the broader financials sector on the S&P 500 rallied in advance of the signing, which took place early Friday afternoon.