Donald Trump to order review of US Dodd-Frank Act

US President Donald Trump is poised to take his first steps towards scaling back financial services regulations on Friday (3 February), including a sweeping review of the 2010 Dodd-Frank Act passed in the wake of the Global Financial Crisis of 2008-09.

In step with his campaign pledge to repeal and replace the act, the president said earlier in the week that "Dodd-Frank is a disaster. We're going to be doing a big number on Dodd-Frank."

Among other proposals, the wide-ranging review would also look at Consumer Financial Protection Bureau (CFPB), the US agency that looks at the protection of customers of banks, lenders, and other financial outfits.

Dodd-Frank Act is named after Democrats Christopher Dodd and Barnett 'Barney' Frank who championed the law through Congress. Trump maintained throughout his presidential campaign that the act did not achieve what it set out to do and is an example of government overreach.

According to broadcaster CNBC, the executive order could direct the Treasury Secretary to consult members of different regulatory agencies and the US Financial Stability Oversight Council, and propose potential changes.

Trump is also expected sign a presidential memorandum instructing the country's Labor Department to delay bringing in the Obama administration's 'fiduciary rule' aimed at blocking financial advisers from steering clients toward investments with higher commissions and fees that can dent retirement savings, for a period of 90 days while a review of the rule is conducted.

Critics of the rule say it limits investment choices of retirees by forcing asset managers to steer them to lower risk options.