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

Floor Speech

BREAK IN TRANSCRIPT

Ms. MAXINE WATERS of California. Mr. Speaker, I rise today in strong opposition to H.J. Res. 88, which would invalidate the Department of Labor's recently finalized fiduciary duty rule and threaten our seniors' retirement savings to the tune of $17 billion per year.

The rule closes loopholes and gaps in our laws so that all financial advisers act in their clients' best interest when providing advice on retirement investments. This is an essential reform that will protect our seniors and ensure our retirees are financially secure.

Not only is this rule a commonsense update, but the Department of Labor worked diligently to address all legitimate stockholder concerns. Secretary Perez should be commended for his exemplary leadership on this issue.

The Department of Labor spent countless hours reviewing comments, meeting with industry and other interested stakeholders, and responding to lawmakers' concerns. That effort has resulted in a strong, workable rule that takes into account different business models across the industry.

For example, the final rule specifically allows firms to recommend proprietary products as long as they make certain disclosures and act in the clients' best interest. It streamlines those required disclosures to make it easier for firms to comply. It provides flexibility in the timing of a contract between a client and an adviser, and it establishes clear distinctions between what is considered education and advice.

Overall, the final rule is carefully crafted to protect investors while creating a workable process for financial advisers. What is more, the rule is supported by hundreds of stakeholders who represent the financial services industry, the public interest, civil rights, consumers, labor unions, and many investment advisers who are already providing advice to savers under a fiduciary standard, yet my colleagues on the other side of the aisle are so intent on dismantling this crucial rule.

This resolution is not their first attempt. H.R. 1090, which went through my committee and passed the House largely along party lines, would have imposed unacceptable delays on the Department of Labor's rulemaking effort. Different measures were considered in other committees that would have replaced the rule with a harmful alternative, and riders were attempted on appropriations bills to prevent the department from working on this rule altogether.

Now, Republicans may have the votes to pass the disapproval resolution on a simple majority, but the President will veto this bill, and Democrats will stand strong to ensure that they cannot override that veto. We will ensure that the laws protecting our seniors' savings are as robust as possible in a fair market. We will ensure that hardworking Americans can trust their financial advisers and make sound investments, and we will ensure that everyone has a right to retire with dignity and security.

BREAK IN TRANSCRIPT

Source