Put President Obama in the ‘nay’ column. The White House said he will veto a bill to block the Department of Labor’s fiduciary passed along party-lines last week in the GOP controlled House.
“The Administration strongly opposes H.J.Res. 88 because the bill would overturn an important Department of Labor final rule critical to protecting Americans’ hard-earned savings and preserving their retirement security,” the Office and Management and Budget said in a statement.
Calling financial regulations governing potential conflicts of interest in place before the rulemaking “outdated” it claims they did not ensure that financial advisers act in their clients’ best interest when giving retirement investment advice.
“Instead, some firms have incentivized advisers to steer clients into products that have higher fees and lower returns—costing American families an estimated $17 billion a year.”
The administration claims the Department’s final rule will ensure that American workers and retirees receive retirement advice in their best interest, better enabling them to protect and grow their savings.
“The final rule reflects extensive feedback from industry, advocates, and Members of Congress, and has been streamlined to reduce the compliance burden and ensure continued access to advice, while maintaining an enforceable best-interest standard that protects consumers. It is essential that these critical protections go into effect.
“If the President were presented with H.J.Res. 88, he would veto the bill,” the statement concludes.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of 401(k) Specialist and Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots. Experienced financial services content executive specializing in creative new media delivery. He joined the American Retirement Association in 2023 as Chief Content Officer, overseeing communications for the organization, as well as its sister organizations.