On the recordMay 24, 2016
I rise today in favor of the Congressional Review Act resolution regarding the Department of Labor's new fiduciary rule. This resolution, which provides Congress with an opportunity to express its disapproval with the administration's regulations, is important for a number of reasons. On the substance, DOL's new rule is extremely problematic. As a number of my colleagues have already attested, the rule, on its face, would unnecessarily impose a new set of regulations under the Employment Retirement Income Security Act, or ERISA, on a greatly expanded number of people. Under current law, brokers and dealers who provide services to retirement plans are already heavily regulated. They are not automatically considered labor law fiduciaries, and, therefore, they are not subject to the increased liability provided under ERISA. Instead, these service providers are subject to regulations issued by the Securities and Exchange Commission to protect investors from fraud and to ensure transparency. Under the new DOL rule, virtually any broker who provides investment advice of any kind to individuals regarding their individual retirement accounts, or IRAs, will be considered a pension plan fiduciary, subject to higher standards and greater liability.…
