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Kline and Roe Welcome Labor Department's Decision to Reexamine Flawed Fiduciary Proposal

WASHINGTON, D.C., September 19, 2011
House Committee on Education and the Workforce Chairman John Kline (R-MN) and Subcommittee on Health, Employment, Labor, and Pensions Chairman Phil Roe (R-TN) released the following statements today after the Department of Labor announced it would reexamine its regulation on the definition of fiduciary:

"The Labor Department’s decision to abandon its deeply flawed fiduciary proposal is good news for both workers and retirees," said Chairman Kline. "From the beginning, it was clear the costs and consequences of this far-reaching regulation would be harmful to those trying to build their retirement savings. I am pleased the administration has chosen to heed the concerns expressed by members on both sides of the political divide. As they return to the drawing board, the administration must commit itself to working with Congress on responsible proposals that will strengthen the retirement security of the American people."

At hearing on July 26, 2011, the Subcommittee on Health, Employment, Labor, and Pensions discussed bipartisan concerns with the proposed fiduciary regulation. The hearing also examined the regulation's potential impact on workers and retirees, including higher investment costs and less access to important investment education.

During times of economic uncertainty," said Chairman Roe, "it is important to ensure the right policy decisions are being made so our small businesses can thrive, especially when it pertains to protecting retirement security. I urge the president to work with Congress to come up with a responsible, job-creating policy that will not disrupt our system of retirement saving. That is why I am pleased the Labor Department has decided to scrap its proposed fiduciary regulation. Going forward, it is my hope we can work together on policies that will improve the retirement savings of our nation's workers and retirees."

On March 15, 2011, House Republican committee leaders pointed out that the fiduciary proposal created conflicts with other financial regulatory initiatives, potentially causing confusion and economic harm. To read the letter, click here.

On April 14, 2011, Republican committee leaders wrote a letter urging the administration to re-propose the fiduciary regulation. To read that letter, click here.


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