If you’ve been following news coverage of the confirmation hearings of Alexander Acosta, Donald Trump’s appointee for head of the Department of Labor, you know he’s been taking heat from Massachusetts Democratic Senator Elizabeth Warren over the fate of something called the fiduciary rule.
This rule is actually a change to the set of rules that control how financial advice is given. According to the measure, financial advisors can no longer favor investment products that give them personal kickbacks over other instruments that would have a better impact on their client’s long-term yields, along with prohibiting other “tricks of the trade” that profit investment professionals at the expense of retirement savers.
