House Bill to ‘Protect’ Savers From DOL Fiduciary Rule

While DOL has pledged "to change aspects of the regulation before final issuance, [we] feel more must be done to adequately address concerns about the rule's impact on the ability of low- and middle-class families to save for retirement."

David Bellaire, executive vice president and general counsel for the Financial Services Institute — which has strongly opposed DOL's fiduciary rulemaking — said that FSI has said "all along the DOL needs to get this rule done right, not done fast."

Members of Congress, Bellaire said, "have not only the right but the obligation to ensure hardworking Americans continue to have access to retirement advice from their independent financial advisor of choice. We will continue to work with Congress to ensure that access is never denied."

The legislation will include the following principles, as stated by the lawmakers:

• Promoting families and individuals saving for a financially secure retirement is an essential public policy good.  
• Retirement advisors must serve in their clients' best interests and must be required to do so.  
• Retirement advisors must deliver clear, simple and relevant disclosure of material conflicts, including compensation received and all investment fees to individuals saving for retirement.  
• Public policies must protect access to investment advice and education for low- and middle-income workers and retirees.
• Public policies should never deny individuals the financial information they need to make informed decisions.  
• Investor choice and consumer access to all investment services – such as proprietary products, commission-based sales, and guaranteed lifetime income – should be preserved in a way that does not pick winners and losers.  
• Small-business owners should have access to the financial advice and products they need to establish and maintain retirement plans and help workers save for retirement.

— Check out FSI Urges Advisors to Prepare for 'Post-DOL World' on ThinkAdvisor.