Tuesday, October 30, 2018

While No One Was Looking, Trump Unleashed a Boom in the Market for Shady Financial Industry Scammers

While the nation pays attention to some of the most obviously outrageous things President Donald Trump does — his grotesque behavior, the Muslim ban, the policy of family separations, the neglect of Puerto Rico — some of his most pernicious actions pass by without much discussion.

One of those actions was the rolling back of the Department of Labor's fiduciary rule under Secretary of Alex Acosta. The rule had been initiated under President Barack Obama, but the Trump administration put a stop to it.

Essentially, the rule was designed to require anyone providing financial advising services to be a fiduciary, someone who works in their clients' interests. Without this rule in place, advisers have more leeway to upsell clients on certain financial services that might earn the adviser a hefty commission — even if it's not what would be best for the client.

As a new report in the Wall Street Journal revealed, under Trump, the market for these types of sketchy services is roaring back.


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