Disapproving A Rule Submitted By The Department Of Labor
Floor Speech
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Mrs. FISCHER. Mr. President, I rise today to discuss the Department of Labor's fiduciary rule.
Over the past year Nebraska's small business owners, retirees, insurance and financial professionals, and individuals in a wide range of other industries have expressed their concerns regarding this fiduciary rule. Unfortunately, the negative feedback I hear has only grown since the final version of this rule was published last month.
This dense and complicated rule would change the definition of a fiduciary and what constitutes investment advice. In short, the rule could make it more difficult for many individuals to open and to maintain IRAs. It could also lead to fewer companies offering 401(k) plans for their employees.
If the rule is implemented, lower income savers may face a disadvantage compared to wealthier consumers with higher account balances. It is often convenient for regulators in Washington to claim they are protecting the middle class, but that is the very segment which stands to lose the most from this new rule. Wealthier consumers and larger businesses often have the resources to comply with costly regulations, but small businesses are already struggling to stay afloat. This rule could further hamper their operations by pricing them out of the market.
Because of these and other concerns, I joined my colleagues to cosponsor the Senate version of the joint resolution of disapproval of this rule. An identical resolution passed the House on April 28 by a wide margin, and later today the Senate will vote to pass the House resolution and send it to President Obama's desk.
Congress has already offered responsible solutions to the problems this rule is trying to address. For example, I am a cosponsor of legislation introduced by Senator Mark Kirk, the Strengthening Access to Valuable Education and Retirement Support--or SAVERS--Act, as well as legislation introduced by Senator Isakson, the Affordable Retirement Advice Protection Act. Both of these bills would protect Americans who are saving for retirement without forcing them into the fixed-fee arrangements the fiduciary rule would, in many circumstances, mandate. These arrangements could create new roadblocks, making it harder--it will make it harder for consumers to receive financial advice.
Nebraskans depend on this financial guidance to plan their futures and also to provide for their families. Washington bureaucrats should not be dictating whom you can hire and what investments you can make. It is time to draw the line and to stop this injection of government into the free market.
I am proud to fight on behalf of Nebraskans and their families for their freedom to make the best financial decisions for their own future, and I urge my colleagues to vote with me in support of this resolution of disapproval.
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