Americans for Tax Reform this week joined a coalition of free market organizations urging Congressional lawmakers to quickly act to stop the pending implementation of the Department of Labor’s (DOL) Fiduciary Rule.
The Fiduciary Rule, put forth by the DOL under President Obama, would greatly reduce the ability of financial advisors to give advice to IRA and 401(k) holders, essentially putting the federal government between Americans and their retirement savings decisions. Estimates show the Rule could disqualify up to 7 million IRA holders from investment advice, and reduce the number of IRAs opened annually by up to 400,000.
The coalition letter outlines three affirmative steps Congress should take to stop the Fiduciary Rule from taking effect before a thorough examination, as ordered by President Trump this year, is completed.
First, the Senate should confirm President Trump’s nominee to lead DOL, Alexander Acosta, who can stop the rush to implementation. Second, any omnibus spending package to fund the government for the next fiscal year should include a policy rider denying funding to DOL for implementation of the Rule. Third, Congress should work toward revising the Rule or overturning it entirely.
The full coalition letter can be found here.
Photo credit: Shawn Clover