Boustany Bill Blocking Fiduciary Rule Passes House

(Washington, DC) - Dr. Charles Boustany (R-Lafayette) supported passage of H.J.Res.88, a bill he introduced with Reps. Phil Roe (R-TN) and Ann Wagner (R-MO) that would block the implementation of the Department of Labor's new fiduciary rule. The bill passed 234-183.

On April 10, 2016, the Department of Labor finalized the "fiduciary" rule, which seeks to expand the definition of a qualified "fiduciary" - a person who provides investment advice - in an attempt to prevent purported conflicts of interest in financial advice. Industry experts say the rule will create more paperwork and record-keeping requirements for planners, meaning higher costs that could effectively price low- and moderate-income families out of being able to access a retirement advisor.

H.J.Res.88 invokes congressional power under the Congressional Review Act (CRA) to prevent the Department's rule from going into effect. The legislation is supported by the American Council of Life Insurers, Americans for Tax Reform, U.S. Chamber of Commerce, Competitive Enterprise Institute, Independent Women's forum, Americans for Prosperity, Americans for Competitive Enterprise, Freedomworks, National Taxpayers Union, U.S. Business and Industry Council, Small Business and Entrepreneurship Council, Center for Freedom and Prosperity, Investment Company Institute, Life Insurers, Insured Retirement Institute, Public Investors Arbitration Bar Assn (PIABA).

Today, Boustany spoke on the House floor in support of his bill. Boustany said:

"The Obama Administration is now proposing new rules that will make it so costly to use a retirement advisor, most low- and medium-income families will be locked out. This is just not right.

"Don't just take it from me; take it from a licensed financial advisor from my hometown in Lafayette, Louisiana, who said the following in comments to the Department of Labor:

"'This proposed regulation could force some investors into fee-based account arrangements, which could actually be to their detriment. Just as in most things in life, a one-size-fits-all solution would most certainly not be best for all.'

"Ultimately, this will stifle individual choice and empower government bureaucrats to make decisions on behalf of those saving for retirement, instead of professional retirement advisors with the knowledge and qualifications to provide advice for their clients.

"How can a regulation that would disqualify up to 7 million IRA holders from investment advice and potentially reduce the number of IRAs opened annually between 300,000 and 400,000 be a good idea? That just defies common sense.

"I believe policymakers should do everything they can to help Americans prepare for retirement, not create red tape that makes retirement more difficult. That's why I urge passage of this bill."

Read this original document at: https://boustany.house.gov/114th-congress/boustany-bill-blocking-fiduciary-rule-passes-house/