FSR Urges Caution on New Labor Department Rules

February 23, 2015

Contact: Erika Reynoso
202-589-2410 | @fsroundtable

FSR Urges Caution on New Labor Department Rules

Proposal could reduce access to investment advice for moderate income Americans

Washington, DC— Following President Obama’s announcement that his Administration plans to release a new rule that could make it more difficult for millions of Americans to access retirement savings investment guidance, the Financial Services Roundtable (FSR) issued the following statement:

“While concerns about improper actions by investment advisors should certainly be addressed, an overly broad proposal could price professional financial guidance beyond the reach of many modest income families,” said FSR President & CEO Tim Pawlenty. “A sledge hammer is not needed where a regular hammer would fix the problem without causing unintended damage.”

A memo by the law firm of Debevoise & Plimpton recently released by FSR provides additional background regarding how a new rule regarding investment advice could limit many American workers’ access to financial guidance, investment products and professional retirement planning.

The full memo can be read here.

The Administration previously proposed a similar fiduciary duty rule in 2010, but was met with significant opposition from lawmakers who expressed concerns over the rule’s negative impact on low and moderate-income savers.

FSR urges the Administration to consider ways to help the middle class save more for retirement and to ensure that they have access to high-quality professionally provided guidance about how to best ensure that investment goals are met. FSR looks forward to continuing to work with the Administration on this proposal and ways to increase retirement security.

For more information, contact Erika Reynoso at Erika.Reynoso@FSRoundtable.org


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.

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