The Blaze reports on the Department of Labor's fiduciary rule and highlights John Berlau's report on the proposed rule.
“In fact, according to some observers, the rule may even extend to television and radio hosts who give advice to individual callers,” said the report from the Competitive Enterprise Institute, a free-market think tank in Washington, D.C.“
I believe it would be a violation of the First Amendment and I think the Founding Fathers would think it would be a violation, but it could take years to decide this in court,” the study’s author John Burlau, a CEI senior fellow, told TheBlaze. He added, “I hope this wakes up members of Congress in both parties.”
The CEI report goes on to say the rule would be harmful to IRAs and 401(k)s and calls on Congress to either stop the rule from taking effect or to defund its implementation. The report further asserts that the rule could result in $80 billion in lost savings from pushing new regulations on small investment portfolios.
“Brokers would have to charge investors much more, because the DOL rule creates a presumption against brokers taking third-party commissions from mutual funds they sell to savers,” the CEI report says. “As a result, investors who currently pay only a small commission on the execution of an order may have to pay a much larger fee based on a percentage of their assets. And since some portfolios are too small to justify the cost of even a management fee, brokers will simply stop servicing them.”
Read the full article at The Blaze.