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Committee Leaders Move to Overturn Flawed Fiduciary Rule, Strengthen Protections for Retirement Savers

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Washington, June 8, 2017 | Lani Short (202-225-6356) | comments

WASHINGTON, D.C. – Rep. Phil Roe (R-TN), member of the House Committee on Education and the Workforce, and Rep. Peter Roskam (R-IL), chairman of the Ways and Means Subcommittee on Tax Policy, today introduced the Affordable Retirement Advice for Savers Act (H.R. 2823). The legislation would protect access to affordable retirement advice by overturning the Obama administration’s flawed fiduciary rule while ensuring retirement advisors serve the best interests of their clients.

Members released the following statements upon introduction:

“Our nation faces difficult challenges when it comes to retirement security, and the American people deserve real solutions,” Rep. Roe said. “That is why, for years, we’ve been working to stop a flawed fiduciary rule that would make it harder for low- and middle-income families to save for retirement. The Obama administration made a reckless, unnecessary trade-off between strong protections for retirement savers and access to affordable retirement advice. This legislation reflects a more responsible solution that will ensure all Americans have access to affordable retirement advice that’s in their best interest.”

“This bill is about helping Americans of all walks of life, at every income level, save for retirement,” Rep. Roskam said. “It protects access to quality, affordable financial advice and creates more choices so families in Chicagoland and across the country can find the tools that help them plan for their futures. This bill encourages more people to save and helps ensure advisors always serve the best interests of their clients. I’m proud to lead this effort with Dr. Roe and look forward to advancing this commonsense legislation.”

Led by Education and the Workforce Chairwoman Virginia Foxx (R-NC), members recently detailed their concerns over the fiduciary rule in a letter sent to the Department of Labor (DOL). Chairwoman Foxx has also expressed the committee’s disappointment in DOL’s decision to allow the rule to take effect June 9, 2017.

BACKGROUND: In 2016, the Department of Labor finalized a flawed fiduciary rule that imposes burdensome new mandates and costly regulatory requirements on financial advisors. According to the American Action Forum, the fiduciary rule was the most expensive regulatory action of 2016 and will impose more than $46 billion in costs on retirement savers. Bipartisan concerns have been raised that the rule will:

  • Restrict access to affordable retirement advice for low- and middle-income families.
  • Make it harder for small businesses to offer retirement plans to their employees.
  • Prohibit advice for basic services, such as assistance in rolling over funds from a 401(k).
  • Leave many individuals with no choice but to search for financial advice online.

The Affordable Retirement Advice for Savers Act (H.R. 2823) addresses these concerns by:

  • Overturning the fiduciary rule to protect access to high-quality, affordable retirement advice.
  • Strengthening retirement planning by requiring financial advisors to serve their clients’ best interests.
  • Enhancing transparency and accountability through clear, simple, and relevant disclosure requirements.
  • Ensuring small business owners continue receiving the help they need to provide retirement plans for their employees.

For a fact sheet on H.R. 2823, click here.

For a copy of H.R. 2823, click here.

For a bill summary, click here.

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Tags: Education