This morning, President Obama is meeting with the soon-to-be regulators of the new, disastrous fiduciary rule.
It has a strange name, which is why last week we offered a definition. Here’s another:
It’s Obamacare for financial planning.
Like Obamacare, the fiduciary rule requires an enormous amount of paperwork and makes recordkeeping more expensive. Like Obamacare, it will result in higher costs and fewer options for small businesses trying to get up and running. Families with modest bank accounts seeking expert advice will no longer be able to justify the expense. Like Obamacare, the fiduciary rule may have a noble intent, but it’s another one-size-fits-all regulation that’s bad for Americans.
In an interview with the Racine Journal Times, Speaker Ryan talked about the rule’s effect on people in his district and around the country:
“Labor rule ‘is such overkill,’ Ryan says. A rule being created by the U.S. Department of Labor is ‘an example of massive overkill by the federal government,’ House Speaker Paul Ryan told The Journal Times on Friday. . . . Ryan, R-Wis., said ‘the intent of making sure people get sound advice and conflicts of interest (disclosures) is a good idea. This rule, however, is such overkill it is destined to put people out of business and making it harder for middle-class investors to get sound financial advice. . . . I get more mail on this than anything. . . .It will dramatically increase the cost for middle-class savers and place it out of their reach.”
Yet none of these stakeholders were invited to the White House today. On the other hand, the bureaucrats who bullied the rule through are sure to be there.
That’s not going to stop Congress from fighting. We have already passed a bill in the House to delay it until the problems are addressed. Two more bills have been passed in committees laying out responsible alternatives. We will not stand for another regulation that hurts our economy. Stay tuned for more.