U.S. Reps. Randy Hultgren (R-IL), Darin LaHood (R-IL) and Steve Womack (R-AR) applauded executive action taken on Friday to halt implementation of a Department of Labor (DoL) rule expanding the definition of “fiduciary.”
President Donald Trump signed an executive order to delay the DoL rule that would have expanded and reclassified the scope of professionals considered financial advisers under federal regulations. The rule had been scheduled to take effect in April.
“Americans planning for retirement still face the prospect of an aggressive federal agency restricting their access to the counsel they need from advisers they trust,” Hultgren said. “Through a series of meetings, my constituents have made it clear they are hurt by this rule, including the thousands of small investors who are served by the many who work in the dozens of Edward Jones and State Farm offices throughout the 14th District. That’s why I support legislation for a simple two-year delay that will ensure no one suffers the unintended consequences of this change.”
Hultgren previously cosponsored the Protecting American Families’ Retirement Advice Act, which would have also delayed the DoL fiduciary rule.
“I applaud President Trump for acting on this early in his administration,” Hultgren said. “I urge the House to act to support this move as we work with an administration that understands the needs of those planning for the future.”
LaHood said he was heartened by Trump’s executive to pause the fiduciary rule and to halt its implementation.
“The Fiduciary rule would be especially devastating back home in my district where various financial service firms and their agents, such as State Farm, offer services and products to help low and moderate-income investors make the best decisions about their finances,” LaHood said.
“The largest causality of this rule, however, would be the hard working middle-class families that rely on those affordable services for financial planning. In its current form, the fiduciary rule would have tied the hands of financial advisors so they would not be able to honestly advise their clients. With this executive order, President Trump cuts those restraints loose to ensure that hardworking Americans have access to retirement advice so they can financially plan for their future,” LaHood said.
Womack also commended Trump and his decision to delay implementation of the DoL rule.
“If implemented, the fiduciary rule would change the way that millions of Americans save for retirement and restrict the options available to them in planning for the future,” Womack said. “It is yet another example of the unintended consequences of government intrusion, and I welcome the president’s efforts to ease the regulatory pressure that so many Americans feel.”