April 6, 2016
“This isn’t ‘middle class economics,’ it’s Washington elitism.”
U.S. Senator Ben Sasse, a member of the Senate Banking Committee, issued the following statement on the Department of Labor’s fiduciary rule that was finalized today.
“This isn’t ‘middle class economics,’ it’s Washington elitism. The rule is built around the Administration’s arrogant assumption that Nebraskans need central planners to pick their financial advisors for them. While this may not harm everyone who can afford big name firms, it is going to make it significantly harder for small businesses and families to access sound financial advice.”
Today, the Department of Labor finalized its fiduciary rule to greatly increase regulation of retirement advisors. Under the rule, fiduciary status is expanded to broadly cover individuals receiving compensation for providing advice that is individualized or directed to a specific retirement plan’s sponsor.
Last summer, Dan Gallagher, then-Commissioner for the Securities and Exchange Commission (SEC), warned that “Broker-dealers utilizing a commission-based fee structure will find it difficult, if not impossible, to navigate the labyrinth of prohibitions and exemptions contemplated by the proposal, and many will make the unfortunate – yet entirely rational – choice to stop servicing certain retirement accounts.”