The new fiduciary rule has a new definition: It’s Obamacare for financial planning. https://t.co/lNx3RF7aPK— Paul Ryan (@SpeakerRyan) March 8, 2016
The Department of Labor's fiduciary rule is set to be released next Wednesday. The Obama administration has argued that this rule will help people trying to save for retirement, but that’s an April Fools-worthy joke. In reality, it’s going to make it harder for families and businesses—especially those with smaller bank accounts—get financial advice.
Here’s a roundup of what you need to know:
1. It’s another one-size-fits-all regulation. What’s the result? It creates more paperwork and costly recordkeeping requirements for financial planners, restricting access to quality investment advice for upwards of 7 million Americans with IRAs. It results in higher costs for people seeking financial advice, disproportionately hurting families with smaller bank accounts.
2. The bureaucrats bullied it through. A report released in February showed the DOL’s utter—and seemingly willful—neglect of the consequences of this rule. It’s a story we’ve heard before: Nonpartisan, professional experts raise concerns, ask for deliberation in the rulemaking process, while politically-appointed bureaucrats bully their way through the process with one thing in mind: a finalized regulation to finish while the president is still in office.
3. It’s Obamacare for financial planning. The fiduciary rule is "an example of massive overkill by the federal government," Speaker Ryan said. "The intent of making sure people get sound advice and conflicts of interest (disclosures) is a good idea," Speaker Ryan continued. "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.”