House Republicans introduced legislation Thursday to overturn the Department of Labor’s fiduciary rule, a day before the rule’s effective date.
Rep. Phil Roe, R-Tenn., a member of the House Committee on Education and the Workforce, and Rep. Peter Roskam, R-Ill., chairman of the Ways and Means Subcommittee on Tax Policy, introduced the Affordable Retirement Advice for Savers Act (H.R. 2823).
The lawmakers said in introducing the bill that it 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.”
Sen. Johnny Isakson, R-Ga., reintroduced the same say day the Affordable Retirement Advice Protection Act, S.1321, which he argued would “preserve access to quality financial planning and ensure that retirement advisors serve the best interests of low- and middle-income Americans.” The bill would also amend the Employee Retirement Income Security Act ”to raise investment advice standards for the retirement industry and strengthen protections for those saving for retirement.”
“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,” Roe said in a statement. “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.”
Roskman added that the bill “is about helping Americans of all walks of life, at every income level, save for retirement. 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.”
H.R. 2823 overturns Labor’s fiduciary rule, while requiring financial advisors to serve their clients’ best interests and enhancing “transparency and accountability through clear, simple and relevant disclosure requirements,” the lawmakers said.