The Daily Caller discusses John Berlau's report on the Department of Labor's proposed fiduciary rule.
The Department of Labor (DOL) has argued people are just not knowledgeable enough to plan for their own retirement. It has proposed a rule to categorize more people as fiduciaries in order to regulate them. The Competitive Enterprise Institute (CEI) warns the upcoming rule could undermine free choice and increase costs on retirees.
“Under the new rule, financial professionals who provide even one-time guidance or appraisal of investments could find themselves classified as ‘fiduciaries,'” the report detailed. “For centuries, the standard definition of fiduciary has been someone in a clear position of trust. In finance, this means someone whom the client has specifically entrusted to manage his or her assets and make investment decisions.”
The report also notes the rule may be illegal because it creates authorities which Congress never explicitly granted the department. The department also bypassed the Securities and Exchange Commission to advance the rule. The report urges lawmakers to rein the department in before it unilaterally expands its own power.
“Members of Congress from both parties have expressed serious concerns about the rule,” the report added. “Congress has a variety of options to block or delay implementation of the DOL rule, including defunding, voting the measure down, and rewriting the law. These options are not mutually exclusive.”
Read the full article at the Daily Caller.