The investing public apparently isn't included among Donald J. Trump's "forgotten men and women."
The president's populist rhetoric would suggest that he'd be watching the backs of everyday investors, setting policy to shield them from finance's seamier characters.
Reality, though, is that "forgotten" little guy and gal investors are in for a painful bait-and-switch. Instead of pursuing investor protection, Trump's idea of securities regulation is to focus on creating jobs -- code for stripping away rules that protect the investing public.
Trump's betrayal of his flock will kick in big-time if, as expected, he manages to delay or get rid of a potent pro-investor Department of Labor rule that companies are set to begin implementing April 10.
The DOL fiduciary rule, which would force brokers giving retirement advice to put investors' interests ahead of their own, has made the securities and insurance industries apoplectic and set off a string of lawsuits and proposed legislation attempting to undo the rule or delay it.
Trump signed an executive order on Friday halting new and pending regulations until his administration could review them, but it isn't clear that the order would apply to the DOL rule. InvestmentNews reported Monday that Trump will need to take a separate action to quash it, which he's expected to do.
Barbara Roper, director of investor protection at the Consumer Federation of America, says it would be a "clear violation of the Administrative Procedures Act" to try to undo the rule using Friday's order. Although companies don't have to begin complying with the rule until April, it has actually been in effect since June, she said.