Disapproving Department of Labor Rule Related to Definition of the Term ``fiduciary''

Floor Speech

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Ms. DeLAURO. Mr. Speaker, I rise in opposition to this resolution, which would block the implementation of the Department of Labor's conflict of interest rule.

I strongly support what the Department of Labor is trying to do with this rule: simply to ensure that financial advisers act in the best interest of the consumer.

Unfortunately, the rule is necessary because some financial advisers are recommending financial instruments that offer rewards or commissions to the adviser for steering the client to those particular instruments instead of recommending retirement options that are in the best interest of the customer. This is about safeguarding worker retirement savings.

The White House Council of Economic Advisers estimates that conflicts of interest cost about $17 billion per year in lost savings for Americans who are trying to save for retirement. This is unacceptable.

When hardworking Americans seek advice on how to invest for retirement, they should not have to worry about being led to make decisions that are not in their best interest. By establishing this fiduciary duty that would require advisers to act in the interest of the customer, we could end this predatory practice.

The rule requires brokers to disclose their fees and financial incentives when offering a financial product, introducing much-needed transparency to the process. Right now, advisers are under no obligation to disclose this information.

When it comes to retirement, every penny counts. It is unconscionable that we would allow self-interested advisers to rob hardworking American families of their hard-earned retirement savings.

The bottom line is that we must pursue policy solutions that benefit working families and that help them to adequately prepare for retirement. Please oppose the resolution.

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