McCaskill, Democrats slam Obama's financial adviser regs

McCaskill, Democrats slam Obama's financial adviser regs
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Moderate Democrats slammed President Obama's proposal to regulate financial advisers, arguing that the administration's proposed regulations would decrease low- and middle-income Americans' access to financial advice.
 
The administration is battling the business community to implement new disclosure requirement for financial advisers.
 
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Obama and Labor Secretary Thomas PerezThomas Edward PerezClinton’s top five vice presidential picks Government social programs: Triumph of hope over evidence Labor’s 'wasteful spending and mismanagement” at Workers’ Comp MORE argue that the requirements are needed because some financial advisers sell faulty investment advice to consumers so that they can pocket payments from financial institutions off the sale.
 
 
"More individuals may completely lose access to in-person investment advice," McCaskill wrote in the letter, an argument that Republicans have made for months.

McCaskill Letter DOL Fiduciary Rule 08052015


 
"At a time when policy-makers and regulators should be preserving, protecting and enhancing retirement savings policy, the proposed rule reverses what has been a recent trend to increase coverage, reduce leakage and enhances savings vehicles."
 
"The stakes are too high to risk the loss of advice for a such a critical segment of the retirement marketplace," she wrote in the letter, first obtained by The Hill.
 
Meanwhile, Democratic Sens. Jon TesterJonathan (Jon) TesterDemocratic senator: 'The ultimate of ironies' for Trump to hit Romney for invoking his faith Committee on Veterans Affairs sends important message during tense Senate time Democrats cry foul over Schiff backlash MORE (Mont.), Heidi HeitkampMary (Heidi) Kathryn HeitkampSusan Collins set to play pivotal role in impeachment drama Pro-trade group launches media buy as Trump and Democrats near deal on new NAFTA The Hill's Morning Report — Biden steadies in third debate as top tier remains the same MORE (N.D.) and Joe DonnellyJoseph (Joe) Simon DonnellyGinsburg health scare raises prospect of election year Supreme Court battle Watchdog accuses pro-Kavanaugh group of sending illegal robotexts in 2018 Lobbying world MORE (Ind.) sent a letter of their own to Perez on Thursday. 
 
"We encourage you to ensure that rules related to retirement savings do not work at cross-purposes in a way that could limit investor access to education and increase costs for middle-class Americans," the senators wrote, according to the letter, also first obtained by The Hill.
 
They urged Perez to adopt a "business model neutral" model that wouldn't negatively impact the market place.
 
"Fundamentally altering the current business model, which we believe the rule would do in its proposed form by effectively requiring level fees — whether intentional or unintentional — could limit access to retirement advice and may push investors out of many options that they can afford," according to the letter, which was also signed by Sen. Angus KingAngus KingUse of voting tabulation apps raise red flags on Capitol Hill Patrick Dempsey to star in pilot for CBS political drama 'Ways and Means' McConnell, Romney vie for influence over Trump's trial MORE (I-Maine).

150806 Letter to Sec Perez Re Fiduciary Rule

Labor officials are set to have a hearing on the proposal next week. The administration, backed by Sen. Elizabeth WarrenElizabeth Ann WarrenWarren: Bloomberg making debate will show how other candidates handle 'an egomaniac billionaire' Klobuchar campaign gets first super PAC HuffPost reporter: Sanders could win plurality of delegates but lose nomination MORE (D-Mass.) and a broad coalition of liberal groups, have rallied behind the administration.
 
But the break in Democrats could signal that Congress could indefinitely delay the regulation, which failed to gain traction in 2010, as part of the congressional budget votes this fall.