U.S. Chamber Praises Presidential Action to Reform Dodd-Frank Act, Delay Fiduciary Rule

U.S. Chamber of Commerce President and CEO Thomas J. Donohue responded today to news that President Donald Trump will issue an executive order enacting sweeping reforms to the Dodd-Frank Act and delaying the Department of Labor (DOL) fiduciary rule:

“Today marks the first step towards mending the dysfunctional regulation of the past and helping Main Street with the financing needed for growth and job creation. Last year the Chamber recommended over 100 ideas for smart, forward-looking financial reforms that promote stability and encourage growth. This executive order stops Washington from picking winners and losers and helps put America’s entrepreneurs back to work. We look forward to working with the administration and Congress in achieving these goals.

“We are also pleased that President Trump took action to halt the harmful impact of the Department of Labor fiduciary rule, which would have made it more difficult for Americans to save for their futures. The flawed fiduciary rule’s rushed implementation would have jeopardized access to retirement advice and choice while its severe consequences and compliance burdens would have made it harder for small businesses to offer retirement plans.

“At the outset, the Department of Labor put forth an accelerated implementation deadline that was driven by political motives rather than practical reality. Now, we look forward to swift action from the Department of Labor in putting this delay into effect and reevaluating matters of policy and law, and we stand ready to help create meaningful policy that will actually meet the retirement needs of small business owners, employees, and retirement savers.”

The Chamber has long been vocal in calling for reforms to the Dodd-Frank Act. Last year the U.S. Chamber’s Center for Capital Markets Competitiveness (CCMC) released Restarting the Growth Engine: A Plan to Reform America’s Capital Markets, an action plan the new administration and Congress can follow to enhance financial stability and spur Main Street economic growth. Additionally, in 2013 CCMC released the Financial Stability Oversight Council Reform Agenda, which offers specific recommendation in a number of areas to reform the systemic risk designation process by establishing clear rules of due process.

In regards to the fiduciary rule, in June 2016 the Chamber launched a legal challenge against DOL over the fiduciary rule and the case is still pending. You can find that complaint here and a statement regarding the lawsuit here.

The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.