Ranking Member Cassidy, Budd, Manchin, Colleagues Introduce Bipartisan CRA to Overturn Biden’s Fiduciary Rule
WASHINGTON – Today, U.S. Senators Bill Cassidy, M.D. (R-LA), ranking member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, Ted Budd (R-NC), Joe Manchin (D-WV), and Roger Marshall, M.D. (R-KS) introduced a Congressional Review Act (CRA) resolution to overturn the Biden administration's new rule that expands the Department of Labor’s (DOL) regulatory power over financial advisors. The policy drastically increases the cost of compliance for financial advisors and restricts access to retirement investment savings for the majority of low-income Americans. U.S. Representative Rick Allen (R-GA) introduced the companion resolution in the U.S. House of Representatives.
Specifically, DOL’s new fiduciary rule redefines who qualifies as an “investment advice fiduciary” under the Employee Retirement Income Security Act of 1974 (ERISA), and threatens to gut a wide range of financial tools that many of the largest financial planning and wealth management firms currently offer consumers, including basic financial education and investment planning courses, life insurance, annuity plans, and other financial instruments.
“The Biden administration is imposing burdensome regulations that restrict investing opportunities, especially for lower-and middle-income Americans,” said Dr. Cassidy. “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.”
“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.
“This Department of Labor rule is yet another example of dangerous federal overreach. While I understand the Administration’s intent to protect Americans’ retirement savings, the truth of the matter is this does the exact opposite. If allowed to go into effect, the rule has the potential to cause many West Virginians to actually lose access to investment advice due to how broadly the rule defines fiduciary. Hardworking West Virginians and Americans need protection, not uncertainty when it comes to their long-term financial security, and they certainly do not want or need the federal government further involved in their personal retirement decisions. I encourage my colleagues on both sides of the aisle to support our Congressional Review Act resolution of disapproval to overturn this reckless rule,” said Senator Manchin.
“This rule is a slap in the face for low to middle income Americans trying to save up for retirement. Once again, Joe Biden is trying to regulate a problem that doesn’t exist. Americans have a variety of options for retirement savings, but this rule – like any regulation – will add costs for brokers and price out people who are trying to find retirement options in an already tough economy,” said Senator Marshall.
“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 Representative Allen.
The lawmakers are joined by U.S. Senators Kevin Cramer (R-ND), John Barrasso (R-WY), Chuck Grassley (R-IA), Steve Daines (R-MT), Joni Ernst (R-IA), Bill Hagerty (R-TN), Jim Risch (R-ID), Roger Wicker (R-MS), Mike Crapo (R-ID), James Lankford (R-OK), Marsha Blackburn (R-TN), and Mike Braun (R-IN).
Last year, Cassidy rebuked the proposed regulation and urged DOL to cease any further action to amend the definition of an investment advice fiduciary. Additionally, Cassidy highlighted DOL’s multiple conflicting positions on the fiduciary rule and how it has caused serious damage to American savers.
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