Obama Administration’s New Fiduciary Rule Will Drive Down Consumer Choice and Drive Up Retirement Costs
Washington– U.S. Senator Tim Scott (R-SC) issued thefollowingstatementin response tothe Department of Labor (DOL) release of a final rule impacting consumer’s access to retirement investment advice.
“Today’s new fiduciary rule issued by President Obama’s Department of Labor hurts families who are simply trying to plan for their retirement,”Senator Scott said. “As it imposes a seriously flawed new set of regulations that create burdensome red tape and reporting requirements, theimpact of the rule will quickly be felt by working and middleclassAmericans across the countrywhen itdrives down consumer choice and increases retirement costs.This is yet another example of the Obama administration overstepping their authority, andIwill continue to fight against the implementation of this albatross around the necks of hardworking Americans.”
Today, Americans hold an estimated $3 trillion in individual retirement accounts.The new fiduciaryrule significantly constricts the availability of financial advice related to pension and retirement plans. The rule will be particularly harmful to low- and moderate-income workers seeking advice for their retirement planning.Currently, the Securities and Exchange Commission (SEC) alreadyregulates the industry to prevent fraud, ensure that fees are disclosed, and protect clients from unsuitable investments.
Scott sits on three committees in the Senate – the Banking, Housing & Urban Affairs Committee, Finance Committee and the Health, Education, Labor and Pensions Committee – with direct jurisdiction on this issue. He formerly was a small business owner licensed to provide financial services to consumers. The rule was first proposed, and subsequentlywithdrawn, five years agofollowing intense opposition by consumers, the financial industry and lawmakers.