U.S. Rep. Charles Boustany (R-LA) on Tuesday put his stamp of approval on the Retail Investor Protection Act.
The Department of Labor recently proposed a fiduciary rule to raise costs and reduce access to retirement
investment advice for Americans with low and moderate incomes, as well
as small-business employees. The Financial Services Institute and Oxford
Economics published a study that indicated the rule would reduce economic activity by nearly $4
billion. The comment period for the rule closed in late September.
The Retail Investor Protection Act would require the Department of Labor to defer to the expertise of the Securities and Exchange Commission to ensure competition and investor choice prevail, while making sure the Labor Department cannot harm low- and middle-income savers.
“This proposed regulation could force investors into a fee-based account arrangement which could actually be to their detriment,” Boustany said. “Just as in most things in life, a one-size-fits-all solution would most certainly not be best for all. The Department of Labor is penalizing retirement planning for low- and middle-income Americans when it should be encouraging this activity. That’s backward and unacceptable. The Retail Investor Protection Act will block the Department of Labor’s misguided rule and ensure our financial policy rewards good behavior.”
The bill was introduced by U.S. Rep. Ann Wagner (R-MO).