GOP lawmakers applauded President Donald Trump’s decision to halt the Department of Labor’s fiduciary rule, saying it will help keep financial advice affordable for all Americans.
The rule, put forward by the Obama administration, was aimed at protecting consumers from seeking professional guidance on their retirement plans. But language in the 1,000-plus page regulation, which would have changed the way financial planners are compensated from a commission-based model to a to a fee-based model, drew bipartisan concern.
Critics of regulation fear the additional red tape would deter low-income and middle-income Americans from seeking professional financial guidance while simultaneously stifling economic growth; owing to the fact the rule might encourage brokers to become more risk averse in the products they recommend, due to fear of possible legal repercussions.
House Committee on Ways and Means Subcommittee on Tax Policy Chairman Peter Roskam of Illinois, one of the leaders in the fight against the regulation’s implementation in the House, praised the executive order, adding he’s optimistic they can craft a plan that protects consumer interests without unintended negative consequences.
“I’m glad to see the Trump Administration recognize the potentially devastating effect of President Obama’s far-reaching fiduciary rule,” Roskam said in a statement to The Daily Caller News Foundation. “I look forward to working with the new administration to craft a standard that raises the bar for the financial services industry without eliminating access to quality retirement advice. All Americans should have financial planning resources available to them, not just the wealthiest among us.”
House Speaker Paul Ryan echoed Roskam’s sentiments, saying he believes there are better approaches they can take going forward.
“President Trump’s action to delay the Obama administration’s fiduciary rule for further study is a wise one. This regulation is deeply flawed,” Ryan said in a statement. “It would significantly raise the cost of seeking financial advice, making it even harder for families to plan their future and save for retirement. It is essentially Obamacare for financial planning. Now we have the chance to study any unintended consequences before it is too late.”
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