Knowing of your interest in business and our economy, I wanted to update you on actions taking place in Washington to help hard-working Americans save for retirement.
Last year the Department of Labor (DOL) issued the “Fiduciary Rule,” placing harsh regulations on financial advisors. The rule requires any individual giving retirement investment advice to act as “fiduciaries” and to provide documentation showing that every particular investment decision is in the best interest of the client. If the advisor is not able to provide this documentation, he or she could face private legal actions.
While I agree that we want retirement savers to have access to sound advice, this rule will make retirement planning unaffordable for low- to middle-income Americans, as their accounts may not be valuable enough for advisors to take on the new legal liability. I am also worried that current relationships with financial advisors will change and discourage retirement saving. This rule was yet another instance of government over-reach by the Obama Administration.
The potentially-harmful Fiduciary Rule prompted many Americans to voice their concerns to Congress about the negative impact it would have on retirement savers and in the House we voted to nullify the rule. However, the Obama Administration ignored our concerns.
That is why I am happy to report that the Trump Administration issued an executive order directing the DOL to review and potentially rescind the Fiduciary Rule, which is set to go into effect on April 10. This Congress, I hope to continue to empower Americans to make their own financial decisions, and facilitate their ability to save for retirement. I will keep you updated as this important issues unfolds over the next few months.