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One hundred and six federal lawmakers raised concerns about the Department of Labor’s proposed rule that would have redefined the term “fiduciary” for retirement savings advisors. In the face of this congressional opposition, as well as protests by NAIFA and other consumer and industry groups, DOL withdrew the proposal on September 19 and said it would introduce a new rule early next year.
NAIFA CEO Dr. Susan Waters sent a letter of thanks to the 63 Democrats and 43 Republicans in Congress who asked DOL to change or scrap the proposal and study how expanding the fiduciary definition could raise costs and reduce access to financial advice for millions of middle class retirement savers.
Dr. Waters reiterated NAIFA’s concern, based on public statements by department officials, that DOL is intent on including advice on individual retirement arrangements (IRAs) in the revised proposal, even though officials have failed to present a convincing argument for making such a drastic regulatory change. NAIFA fears regulations making it more difficult for advisors to help clients with IRAs would discourage many middle- and lower-income Americans from saving for retirement.
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