Obama vetoes GOP attempt to rollback financial adviser rule

President Obama blocked Republicans from rolling back new investor protections.

The Labor Department’s controversial fiduciary rule would require financial advisers to act in the best interest of retirement savers. 

Democrats believe the rule will bring a greater level of fairness to the process of saving for retirement. But Republicans say it will raise the cost of professional advice and prevent middle-to-low income Americans from building a nest egg for the future.

The Senate and House voted in April to overturn the regulation under the Congressional Review Act, but President Obama on Wednesday vetoed the measure.

"This rule is critical to protecting Americans' hard-earned savings and preserving their retirement security,” President Obama wrote in the veto.

"The outdated regulations in place before this rulemaking did not ensure that financial advisers act in their clients’ best interests when giving retirement investment advice,” the president continued. "Instead, some firms have incentivized advisers to steer clients into products that have higher fees and lower returns — costing America's families an estimated $17 billion a year."

But Republicans, who do not have the two-thirds majority needed to overcome the president’s veto, said they would not give up without a fight.

“Those who will be hurt the most are the very men and women who need help saving for retirement,” Rep. John Kline (R-Minn.) said Wednesday.

"President Obama is apparently willing to accept these painful consequences, but Republicans are not,” added Rep. Phil Roe (R-Tenn.). "We’ll continue to do everything in our power to protect access to affordable retirement advice for every American.”