Most independent broker-dealers want to see Donald Trump repeal the Department of Labor's fiduciary rule, a recent survey by the Financial Services Institute has found.

The new rule will have a substantial impact on the retirement planning industry. Many advisors who were previously held to a mere fiduciary standard will now become much more accountable for their actions with clients who are saving for retirement. But many industry groups have vigorously opposed this rule, and several lawsuits have been filed in an effort to block this legislation. Donald Trump's advisors have stated that he intends to repeal this rule, although it appears to be unlikely that he will be able to do much about it before the rule officially goes into effect next April. (For more, see: Can Trump Roll Back the Fiduciary Rule?)

The survey reflected an almost unequivocal level of opposition to the rule by the 1,357 registered representatives who participated. Over 85% of respondents stated that they want to see Trump repeal this rule, and over 70% of those advisors voted for Trump. Analysts have widely projected that advisors who work for independent broker-dealers will be among the hardest hit by the rule, which will make it considerably more difficult for advisors to work on commission. This is how most registered representatives who work for these firms operate.

Those who support the rule contend that it will increase investment returns for clients who are saving for retirement by making it harder to sell investment products with high fees and expenses, such as variable annuities that are not publicly traded.

Regardless of what action is taken to block the rule, repealing it won’t be a simple matter. The future of the rule may depend on court decisions or else require Congressional action to reverse. The financial industry is closely watching the development of this rule and its potential impact upon advisors and their clients. (For more, see: The New Fiduciary Rule: Will Lawsuits Overturn It?)

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