Republicans are looking to roll back the Obama administration’s controversial financial adviser rule.
Dozens of Senate Republicans filed a motion of disapproval under the Congressional Review Act to overturn the Labor Department's so-called fiduciary rule, which requires investment advisers to act in the best interest of retirees.
The Labor Department says the fiduciary rule will protect retirees from bad investment advice, but Republicans argue the rule will raise the cost and make advice unaffordable for low-income Americans.
The Congressional Review Act would allow lawmakers to collectively reject the fiduciary rule, but Republicans may not have enough support to overcome a presidential veto.
“Retirement planning is going to be available only to the rich under the Labor Department’s so-called ‘fiduciary’ rule, because many financial advisors won’t risk the new legal liability except for clients with big accounts,” Senate Labor Chairman Lamar AlexanderLamar AlexanderMcConnell gets GOP wake-up call The Hill's Morning Report - Presented by Alibaba - Democrats return to disappointment on immigration Authorities link ex-Tennessee governor to killing of Jimmy Hoffa associate MORE (R-Tenn.) said in a statement.
The disapproval measure was introduced Monday by GOP Sens. Johnny IsaksonJohnny IsaksonHerschel Walker calls off fundraiser with woman who had swastika in Twitter profile Georgia reporter says state will 'continue to be a premier battleground' Critical race theory becomes focus of midterms MORE (Ga.), Mike EnziMichael (Mike) Bradley EnziCheney on same-sex marriage opposition: 'I was wrong' What Republicans should demand in exchange for raising the debt ceiling Senate votes to end debate on T infrastructure bill MORE (Wyo.), and Alexander. It is co-sponsored by another 30 Senate Republicans.
Senate Republicans have 60 days to pass the motion of disapproval with a simple majority vote. The House will likely follow suit. But the GOP does not have the two-thirds majority it needs to overcome an almost-certain veto from President Obama.
“Like so many of this administration’s decisions, their new fiduciary rule harms the very individuals it seeks to protect and prevents those hardworking Americans who are trying to plan for retirement from having the opportunity to access retirement advice,” Isakson said in a statement.