Today, the Senate voted against the Labor Department's fiduciary rule by approving the House-passed resolution of disapproval, under Congressional Review Act auspices. CEI financial policy expert John Berlau voices his support of that vote.
"Congress must to stop the Labor Department’s fiduciary rule and the harm it would impose on hard-working families saving for their retirement. The rule restricts both choices and access to investment guidance for middle and lower-income savers. As seen in the United Kingdom, barring brokers from receiving third-party commissions, which the fiduciary rule effectively does, resulted in a guidance gap where savers with less than $240,000 in assets could not get their accounts serviced by a broker or adviser.
The fiduciary rule also underscores the Obama administration's disregard for the law that Congress wrote and the competence of Americans to handle their money."
The Securities and Exchange Commission and the states have defined the term “fiduciary” for decades. Also, the Employee Retirement Income Security Act of 1974 does not authorizes the Labor Department to unilaterally redefine this term in a way that brings a broad swath of financial professionals under its jurisdiction.