Today, Congressman Rick W. Allen (GA-12) and Senator Ted Budd (R-NC) introduced a Congressional Review Act (CRA) Joint Resolution of Disapproval to overturn the Biden Department of Labor’s (DOL) finalized fiduciary rule. Upon the introduction, Congressman Allen issued the following statement:
"Saving for retirement is crucial for American families, and sound financial advice when preparing for the future should be an easily accessible resource for hardworking Americans, not a bureaucratic nightmare. By muddying the waters with burdensome overregulation, the Biden DOL’s finalized fiduciary rule does more harm than good to the very people it is claiming to protect – retirees and savers. If we do not act, this recycled Obama-era disaster will restrict access to valuable retirement guidance and impede prudent financial planning for millions of households. With the bicameral introduction of this Congressional Review Act resolution, we hope to safeguard Americans’ access to financial planning," said Congressman Allen.
"The Biden administration’s latest executive overreach would make it harder for working families to invest and prepare for their financial future. Consumers would lose access to financial advice, reduce the number of financial management options, and throw a would-be retiree’s financial security into uncertainty. That’s why I am proud to lead the Senate’s bipartisan CRA to overturn this dangerous new regulation, and look forward to it receiving a vote on the floor," said Senator Budd.
"The Department of Labor’s fiduciary rule is government control and excessive regulatory burden at its worst. This rule reaches well beyond the Department’s jurisdiction and attempts to regulate individuals’ choices for their own retirement savings. Furthermore, a carbon copy of this rule was shot down by the 5th U.S. Circuit Court of Appeals in 2016. The American people are tired of the Biden administration’s regulatory overreach and unlawful actions which are foisting trillions of dollars of unnecessary compliance expenses on individuals and businesses. I thank Congressman Allen for leading a Congressional Review Act resolution to end this harmful rule on behalf of retirement plans, retirees, and savers," said Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC).
"The Biden administration is imposing burdensome regulations that restrict investing opportunities, especially for lower-and middle-income Americans. Americans should be encouraged to save by, among other things, minimizing hassle. This is whether they are saving for retirement, a child’s education, or for the unexpected life event. This CRA stops the Biden administration from making it harder for Americans to invest in their future," said Senate Committee on Health, Education, Labor and Pensions Ranking Member Bill Cassidy (R-LA).
BACKGROUND: The Congressional Review Act enables Congress to disapprove of a final rule issued by a federal agency within 60 days of its publication and prevents the agency from issuing a “substantially similar” rule in the future unless authorized by Congress. The Biden Administration’s disastrous fiduciary rule would redefine when a financial services provider would become subject to regulation as a fiduciary under the Employee Retirement Income Security Act (ERISA), which will eliminate options for working-class Americans, reduce their ability to retire, and limit their access to financial advice by imposing significant regulatory burdens and litigation risks.
Under current ERISA laws, a fiduciary is a person who is already required to provide investment advice “solely in the interest of the participants and beneficiaries.” A Deloitte study shows a similar 2016 Obama DOL fiduciary rule limited or eliminated financial advice to 10.2 million accounts.
