The Senate voted today to halt a new federal regulation that would limit the advice that can be provided when Americans are looking to plan for their retirement.
Speaking on the Senate floor, U.S. Senator Mike Enzi, R-Wyo., said the overbearing fiduciary rule from the Department of Labor will specifically hurt the ability of low and middle income Americans to save for retirement by increasing the paperwork and cost of financial advice, effectively cutting off their access.
“Sure, large companies and retirement savers with large assets will probably be able to deal with the increased costs, but what about small advisors and retirement savers with moderate assets? That’s most people in states like Wyoming.” Enzi said. “This rule will negatively impact the services and choices available to investors. I can’t imagine why limiting options, choices, and services is being touted as a victory for anyone.”
Enzi pointed out that the effects of a similar rule in the U.K. has already shown how the new U.S. regulation would restrict access for average Americans.
The resolution of disapproval, filed under the Congressional Review Act, is led by U.S. Senator Johnny Isakson, R-Ga., in the Senate and cosponsored by Enzi and U.S. Senator John Barrasso, R-Wyo., among others. The House passed it last month. The resolution is now headed to President Obama’s desk where it is expected to be vetoed.
“Wealthy Americans across America will not be affected by this rule,” Enzi said, “They can go about receiving their retirement advice the same way they always have. However, many of my constituents will be affected by this rule. Their retirement savings will suffer, it’s as simple as that.”