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WASHINGTON
–
The
same
week
the
Fiduciary
Rule
is
set
to
go
into
effect,
Sen.
Tim
Scott
(R-SC)
joined
several
of
his
colleagues
in
reintroducing
legislation
designed
to
fight
implementation
of
a
misguided,
big-government
Obama-era
rule
that
will
harm
retirement
planning
access
for
hardworking
Americans.
Known
as
the
“fiduciary
rule”
and
found
in
the
fine
print
of
hundreds
of
pages
of
U.S.
Department
of
Labor
regulations,
the
Obama
administration’s
Department
of
Labor
sought
to
redefine
the
word
“fiduciary.”
Fallout
from
this
misguided
overreach
is
already
resulting
in
increases
in
required
minimum
balances
in
retirement
accounts
and
the
loss
of
access
to
investment
advice
for
thousands
of
Americans.
The
introduced
legislation,
the
Affordable
Retirement
Advice
Protection
Act,
S.1321,
would
preserve
access
to
quality
financial
planning
and
ensure
that
retirement
advisors
serve
the
best
interests
of
low-
and
middle-income
Americans.
It
would
also
amend
the
Employee
Retirement
Income
Security
Act
of
1974
to
raise
investment
advice
standards
for
the
retirement
industry
and
strengthen
protections
for
those
saving
for
retirement.
Scott
joined
U.S.
Senators
Johnny
Isakson
(R-GA),
Lamar
Alexander
(R-TN),
chairman
of
the
Senate
Committee
on
Health,
Education,
Labor,
and
Pensions,
Pat
Roberts,
(R-KS),
and
Todd
Young
(R-IN),
all
original
co-sponsors
of
the
legislation.
“Hardworking
American
families
deserve
access
to
affordable
and
reliable
investment
advice,”
said
Scott.
“In
its
current
form,
the
Department
of
Labor’s
fiduciary
rule
will
limit
a
saver’s
ability
to
acquire
basic
investment
education
and
assistance.
How
are
families
supposed
to
grow
their
nest
eggs,
prepare
for
retirement,
and
take
care
of
their
children’s
future
if
the
federal
government
restricts
how
they
receive
financial
counsel?
While
I
remain
disappointed
by
the
Department
of
Labor’s
decision
to
move
ahead
with
the
rule,
I
will
push
both
the
DOL
and
Securities
and
Exchange
Commission
to
work
together
to
minimize
the
damage
it
will
do
to
the
retirement
security
of
everyday
people.”
The
Affordable
Retirement
Advice
Protection
Act
seeks
to
block
the
Department
of
Labor’s
harmful
fiduciary
rule
and
to
provide
a
viable
alternative
that
would:
- Raise
standards
for
the
retirement
services
industry
and
strengthen
protections
for
savers
by
directing
retirement
advisors
to
serve
in
their
clients’
best
interests
- Penalize
financial
professionals
who
violate
the
trust
of
their
clients
- Require
clear
communication
of
key
information
by
advisors
to
ensure
investors
are
well
informed
to
make
investment
choices
- Ensure
advice
and
investment
options
are
available
to
individuals
seeking
retirement
savings
guidance
to
best
meet
their
needs
and
circumstances.
Since
the
rule
was
announced
by
the
Obama
administration,
Scott
has
been
aggressive
about
stopping
its
implementation,
which
included
sending
a
letter
to
Labor
Secretary
Acosta
urging
him
to
conduct
an
immediate
review
of
the
rule.
Full
text
of
the
letter
sent
on
April
28
can
be
viewed
here.
Full
text
of
the
Affordable
Retirement
Advice
Protection
Act
can
be
viewed
here.
Background:
In
October
2010,
the
Department
of
Labor
proposed
rewriting
its
regulatory
definition
of
a
“fiduciary,”
allegedly
to
protect
individuals
from
misleading
investment
advice.
However,
the
administration
later
withdrew
its
rule
amid
widespread,
bipartisan
criticism
that
the
proposal
would
essentially
prevent
lower-
and
middle-income
investors
from
gaining
access
to
the
advice
market
and
would
likely
result
in
confusion
and
ultimately
discourage
savings
participation.
Despite
these
concerns,
the
Department
of
Labor
again
proposed
a
fiduciary
rule
in
April
2015
that
fails
to
address
many
of
the
concerns
raised
over
the
previous
rule.
On
January
28,
2016,
the
Department
of
Labor
submitted
its
final
fiduciary
rule
to
the
Office
of
Management
and
Budget.
On
Feb.
3,
President
Trump
recognized
the
flaws
of
this
big-government
regulation
and
directed
the
labor
department
to
further
study
the
new
rule,
originally
scheduled
to
take
effect
on
April
9.
The
department
subsequently
delayed
the
application
of
the
fiduciary
rule
until
June
9.
Secretary
Acosta
then
announced
that
the
department
needs
more
time
to
consider
its
options
for
addressing
this
rule.
However,
following
the
current
delay
of
the
rule,
this
rule
will
go
into
effect
despite
some
non-enforcement
provisions
designated
by
the
Department
of
Labor.
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