Joco Today

Washington, D.C. - U.S. Senator Roger Marshall, along with a group of bipartisan senators, has written a letter urging the Department of Labor (DOL) to reconsider its proposed Retirement Security Rule, titled "Definition of an Investment Advice Fiduciary." The senators argue that if this rule is finalized, it will impose unnecessary regulations and additional costs on financial advisors, ultimately limiting retirement investment options for Americans.

The letter, led by Senator Marshall, emphasizes the negative consequences of similar rules implemented under the Obama administration. These rules had a detrimental impact on millions of retirement accounts and resulted in billions of dollars in lost retirement savings before being overturned by the courts. Senator Marshall and his cosigners warn the DOL against repeating these mistakes and implementing rules that would negatively affect investors' retirement savings.

According to Senator Marshall, "We appreciate the Department's desire to ensure Americans are protected as they pursue the financial means to enjoy a secure retirement, but this proposal will have the opposite effect by imposing significant costs that will limit investors' access to the financial advice they need to secure their future."

The letter highlights the belief that the proposed rule is redundant and burdensome, creating excessive regulations for an already burdened industry. It argues that designating any advisor that charges a fee as a fiduciary misunderstands the purpose of choices in the advisor market. Investors should have the freedom to choose the payment method for financial advice, whether it be through fee for service planning, assets under management fees, or commissions.

Furthermore, the letter asserts that the rule fails to distinguish between investment advisers who are already considered fiduciaries and brokers and insurance agents who do not assume fiduciary status in selling products to their clients.

The senators express concerns that the proposed rule will limit consumer choices in the market and may even result in some individuals being unable to access financial advisors altogether. They point to the consequences of a similar rule implemented in 2016, which led to over 10 million retirement account owners being limited or forced to stop working with their financial advisors, resulting in missed savings of $900 billion.

The letter concludes by emphasizing the urgency of the matter, stating that at a time when the retirement gap is already at $3.68 trillion, the Department should not be implementing rules that would further deplete retirement savings for constituents.

To read the full letter, click HERE.

In summary, Senator Roger Marshall and a group of bipartisan senators are calling on the Department of Labor to reconsider its proposed Retirement Security Rule. They argue that the rule would impose unnecessary regulations and additional costs on financial advisors, limiting retirement investment options for Americans. The senators highlight the negative consequences of similar rules implemented in the past and urge the Department to avoid repeating those mistakes. They emphasize the importance of preserving investor access to financial advice and maintaining consumer choices in the market.

Click this link to access more information: https://www.marshall.senate.gov/newsroom/press-releases/senator-marshall-fights-to-protect-consumer-freedoms-in-letter-to-department-of-labor/