FOR IMMEDIATE RELEASE
February 3, 2016
Dept. of Labor Fiduciary Standards Rule may cause millions of Americans to lose access to financial savings advice
Washington, DC—The Financial Services Roundtable (FSR) applauded U.S. House lawmakers this week for advancing legislation intended to ensure an Administration rule does not harm low to moderate income Americans’ ability to save adequately for retirement, as well as significantly restrict their access to financial savings advice.
“We need to be doing more to encourage Americans to save and the proposed rule could hike costs and increase red tape for consumers trying to plan for retirement,” said FSR President & CEO Tim Pawlenty. “Chairman Peter Roskam (R-IL), Chairman Phil Roe (R-TN), Rep. Richard Neal (D-MA), Rep. John Larson (D-CT) among many others, understand the stakes and have taken an important step this week to help retirement savers.”
Members of the House Education and Workforce Committee, as well as the House Ways and Means Committee, voted to support H.R. 4293, the “Affordable Retirement Advice Protection Act”, and H.R. 4294, the “Strengthening Access to Valuable Education and Retirement Support.” As a package, the bills require an affirmative vote by Congress before the retirement rule, which is being proposed by the Department of Labor (DoL) could take effect. It would also help ensure that retirement savers maintain access to quality professional financial advice about their retirement options.
The DoL’s proposal has triggered significant public policy and implementation concerns from academics, policy experts and elected officials from across the political spectrum. They have expressed particular concern that the rule could limit information available to workers about rollover investment options as workers move from job to job. Concerns have also been expressed about “leakage” from the retirement savings system if rollovers are not well-decided and handled properly. This could result in workers, especially minorities and younger workers, “cashing-out” their 401(k)s, leaving them much less prepared for retirement. The proposed rule could also harm small businesses and their employees by making it more difficult for small employers to implement or manage employee retirement savings plans.
Learn more about the financial services industry’s significant concerns with the DoL’s proposed fiduciary rule here: www.protectourfinancialfuture.com
The Financial Services Roundtable represents the largest integrated financial services companies providing banking, insurance, payment and investment products and services to the American consumer. Member companies participate through the Chief Executive Officer and other senior executives nominated by the CEO. FSR member companies provide fuel for America’s economic engine, accounting for $92.7 trillion in managed assets, $1.2 trillion in revenue, and 2.3 million jobs. Learn more at FSRoundtable.org.