Press Releases

Rep. Phil Roe (R-TN), chairman of the Education and the Workforce Subcommittee on Health, Employment, Labor, and Pensions, along with Rep. Charles Boustany, chairman of the Ways and Means Subcommittee on Tax Policy, and Rep. Ann Wagner (R-MO), today introduced a resolution, under the Congressional Review Act, to block the Department of Labor’s (DOL) controversial rule restricting access to investment advice. Known as the “fiduciary” rule, the rule will make it harder for low- and middle-income families to save for retirement and creates new obstacles for small business owners who want to offer employees options to save for retirement.

“In today’s economy, too many families are struggling to save for retirement. That’s why it’s crucial Americans have access to the retirement advice they need to make the best decisions for the future,” Rep. Roe said. “Unfortunately, the administration’s misguided rule does just the opposite. This new regulatory scheme will hinder access to retirement advice for low- and middle-income families and make it harder for small businesses to help their employees plan for retirement. Hardworking men and women should be able to look forward to retirement, and our resolution will help ensure they’re able to prepare for the years ahead.”

"This harmful rule targets middle-class families by restricting access to professional financial advice, making it more difficult to save for retirement," said Rep. Boustany. "This is unacceptable. We must fight to provide an environment where small businesses and families have the opportunity to succeed and stop this administration’s harmful regulations.”

“The DOL’s fiduciary rule hurts those it claims to protect: low- and middle-income families who are looking for sound investment advice in the midst of a savings crisis. The unquestionably flawed rule raises costs, limits choices and restricts access to investments for hardworking Americans,” said Rep. Wagner. “The fiduciary rule is ObamaCare for retirement savings and our resolution will give Americans the freedom to choose how they plan and invest in their future.”

BACKGROUND: The Department of Labor’s fiduciary rule imposes a host of new mandates and regulatory requirements on retirement advisors. Since the drafting of a similar rule in 2010, bipartisan concerns have been raised about the negative effects the new mandates will have on individuals and small business owners. The rule’s far-reaching consequences include:

• Making it harder for low- and middle-income families to save for retirement.

• Restricting the ability of individuals to receive some of the most basic financial advice.

• Creating new hurdles for small businesses that will have to pay more to offer their workers retirement options.

Under the Congressional Review Act, Congress may pass a resolution of disapproval to prevent, with the full force of the law, a federal agency from implementing a rule or issuing a substantially similar rule without congressional authorization. The resolution would block the Department of Labor’s fiduciary rule, which is scheduled to go into effect in April 2017. The resolution follows earlier efforts to enact a responsible, bipartisan alternative to the department’s flawed rule.

Led by Rep. Roe, lawmakers advanced complementary legislative proposals that would require financial advisors to act in the best interests of their clients, and ensure low- and middle-income Americans have access to quality, affordable retirement advice. The House has also taken action on legislation sponsored by Rep. Wagner that would have required the department to coordinate its actions with the Securities and Exchange Commission.

To read the resolution, click here.

To learn more, click here.

 

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