U.S. Rep. Joe Wilson (R-SC) recently introduced the Protecting American Families’ Retirement Advice Act, which would delay the effective date of the Department of Labor’s ruling on conflicts of interest in retirement advice.
“The Department of Labor’s fiduciary rule is one of the most costly, burdensome regulations to come from the Obama Administration. Rather than making retirement advice and financial stability more accessible for American families, they have disrupted the client-fiduciary relationship, increased costs, and limited access,” said Wilson. “This legislation will delay the implementation of this job-destroying rule, giving Congress and President-elect Donald Trump adequate time to re-evaluate this harmful regulation.”
The rule is due to go into effect April 10.
Wilson’s bill gained the support of several organizations including the American Council of Life Insurers, Financial Services Roundtable, Insured Retirement Institute, National Association of Insurance and Financial Advisors, and the Securities Industry and Financial Markets Association (SIFMA).
“We continue to believe the rule is harmful to the market and most importantly investors,” said Kenneth Bentsen, president and CEO of SIFMA. “As our members have worked diligently to prepare for implementation, at great cost and with consequential impacts on retirement savers, a delay in applicability would be prudent to allow the new Congress and Administration to review a better course to protect investors.”
Tim Pawlenty, CEO of the Financial Services Roundtable, said, “FSR strongly supports requiring companies to act in their customers’ ‘best interest’. That’s just common sense. However, the current rule is overly complex, involves too much red tape, and is already negatively impacting consumer choice and service. Rep. Wilson’s bill will allow time for a less bureaucratic ‘best interest’ standard to be developed.”