Washington, D.C.— U.S. Senators Tom Cotton (R-Ark.), Mark Kirk (R-Ill.), Johnny Isakson (R-Ga.), Roy Blunt (R-Mo.) and Kelly Ayotte (R-N.H.) yesterday introduced legislation to prevent the Department of Labor’s (DoL) proposed “fiduciary rule” from limiting consumers’ ability to choose their financial advisors. The Strengthening Access to Valuable Education and Retirement Support (SAVERS) Act, S. 2505, would preserve families’ access to retirement advice and ensure advisors serve their clients’ best interests.
“American families depend on their trusted local financial advisor for advice on planning and saving for the future,” the Senators said. “There is bipartisan agreement that we can raise standards without Washington dictating who Americans can hire and what investments they can make.”
If implemented, the controversial fiduciary rule, which the DoL first proposed in April 2015, will impose new regulations on financial advisors and reduce access to quality financial planning advice, particularly for low and middle income families who depend on it most.
The SAVERS Act would require Congressional approval before any final fiduciary rule goes into effect. If Congress votes down the regulatory proposal, the SAVERS Act would establish a new “best interest” standard to provide real protection to retirement savers without increasing costs or reducing choice. The bill is similar to the Affordable Retirement Advice Protection (ARAP) Act, S. 2502, which was introduced by Senator Isakson, who is chairman of the Senate Health, Education, Labor and Pensions Subcommittee on Employment and Workplace Safety.
Bipartisan majorities on the House Committees on Ways and Means and Education and the Workforce this week approved the House version of the SAVERS Act, H.R. 4294, which was introduced in December by Representatives Peter Roskam (R-Ill.-06) and Richard Neal (D-Mass.-01).