This week Rep. Phil Roe (R-Tenn.), joined by Rep. Charles Boustany (R-La.) and Rep. Ann Wagner (R-Mo.), introduced a resolution under the Congressional Review Act to block the Department of Labor’s (DOL) recently released “fiduciary” rule. A similar resolution was also introduced this week in the Senate by Sen. Johnny Isakson, (R-Ga.).
The DOL’s fiduciary rule, finalized April 6th of this year, would limit the ability of IRA advisors to talk with potential investors or to recommend specific investment advice. This in turn will increase compliance costs, inevitably pushing some users out of the world of IRAs and discourage others from using them.
Speaking this week on the rule, Rep. Roe stated:
“It’s crucial Americans have access to the retirement advice they need…Unfortunately, the administration’s misguided rule does just the opposite. The new regulatory scheme will hinder access to retirement advice for low-and-middle-income families and make it harder for small businesses to help their employees plan for retirement.”
It is estimated the fiduciary rule could disqualify up to 7 million IRA holders from investment advice, and potentially reduce the number of IRAs opened annually by between 300,000 and 400,000.
Pursuant to the Congressional Review Act, the House and Senate can vote on a joint resolution of disapproval to stop, with the full force of the law, a federal agency from implementing a rule or issuing a substantially similar rule without congressional authorization.
Americans for Tax Reform urges lawmakers to support both of these important resolutions in order to protect low-and-middle income families, small businesses, and employees from increased retirement savings costs and reduced access resulting from the DOL’s fiduciary rule.
Photo credit: Matt Popovich