One of the Trump administration’s Securities and Exchange Commission nominees has doubts about the Labor Department’s fiduciary rule and seems to favor disclosure as the best approach to investment advice standards. The other nominee is a blank slate on the issue.
Over the last several weeks, the White House has nominated Republican Hester Peirce and Democrat Robert L. Jackson Jr. for the agency’s two vacant slots. Ms. Peirce, a senior fellow at the conservative Mercatus Center at George Mason University, has criticized the DOL regulation and says the SEC should take the lead on a fiduciary duty.
“The [DOL] rule is rooted in the belief that investors cannot choose for themselves,” Ms. Peirce, 46, wrote in a May 22 U.S. News & World Report article. “The Securities and Exchange Commission should be allowed to take the lead in any rulemaking related to investors’ interactions with financial professionals. Its approach to regulation preserves investor choice: Ensure that investors get the information they need to decide for themselves which products and services work for them.”