CEI-Led Coalition Asks Congress to Help Middle Class and Stop Labor Dept Fiduciary Rule

Thirty-three conservative and free-market groups, coordinated by the Competitive Enterprise Institute, sent a coalition letter today urging congressional leaders to defund the destructive “fiduciary rule” proposed by the Department of Labor (DOL).

“Put simply, the rule would make it much more difficult for individuals to open and maintain an IRA and for companies to offer 401(k)s, as leading experts say many brokers will stop serving households with less than $50,000 in assets,” the coalition letter explains.

The letter also notes 96 House Democrats have also expressed such concerns to the DOL.

“This rule would severely restrict investment choices in savings plans such as 401(k)s and individual retirement accounts (IRAs), especially for poor and middle class investors, by forcing investment professionals to adhere to a one-size-fits-all definition of 'best interest' for assets and investing strategies,” said CEI senior fellow John Berlau.

Currently, House and Senate appropriations bills for fiscal year 2016 freeze the DOL fiduciary rule by prohibiting the DOL from spending any money on implementing or enforcing the rule. The coalition letter encourages Congress to continue to “exercise its power of the purse granted by the Constitution” and “freeze funding in any spending bill” for the fiduciary rule until the DOL withdraws the rule.

The coalition letter is addressed to House Speaker John Boehner and Senate Majority Mitch Leader McConnell. The letter is also being sent to members and committees who oversee the Department of Labor and banking and financial services.

View the coalition letter

Background material: