Wicker: Senate Blocks Harmful Fiduciary Rule
Regulation Would Impact American Families, Restrict Access to Quality Retirement Advice
WASHINGTON – U.S. Senator Roger Wicker, R-Miss., today voted in favor of a resolution, H.J. Res. 88, that would block implementation of the U.S. Department of Labor’s controversial “fiduciary” rule. The proposal, led by Senator Johnny Isakson, R-Ga., would rescind the Obama Administration’s intrusive regulation restricting low- and middle-income Americans’ access to financial advisors. The measure was passed by a vote of 56-41.
“The Administration’s latest regulatory assault will make it nearly impossible for many Americans to access needed retirement advice,” Wicker said. “Families rely on their financial advisors to plan for a secure retirement. This costly rule would give the federal government excessive control over who can access financial guidance. Americans with smaller retirement savings should not be at risk of losing access to affordable, quality advice.”
The Department of Labor’s final fiduciary rule is estimated to cost the financial industry $31.5 billion over the next 10 years, with up to five million Americans losing access to annuities as a result of rising minimums. Access to retirement advice, particularly for low- and moderate-income workers, would be restricted, and the majority of retail investors would see costs increase by an average of 73 to 196 percent because of the mass shift toward fee-based accounts. The rule would also harm small business retirement plans, which represent more than nine million U.S households with approximately $472 billion in retirement savings.
Under the “Congressional Review Act” (CRA), Congress can overturn actions by a federal agency following the formal publication and submission of a rule to Congress. If the CRA is enacted into law, it would nullify the fiduciary rule even if portions have already gone into effect. The House of Representatives passed companion legislation in April. The bill now awaits President Obama’s signature to become law.
Posted May 25, 2016 - 9:41 am