President Obama on Wednesday vetoed a congressional resolution to block the Department of Labor’s final fiduciary rule.
“Because this resolution seeks to block the progress represented by this rule and deny retirement savers investment advice in their best interest, I cannot support it,” Obama said in a statement.
The Washington Examiner reports the Republicans in the House and Senate had voted to stop the rule through the Congressional Review Act, but without Democratic help do not have the votes to override a veto, meaning that the resolution is not a threat to the rule’s implementation.
“It is essential that these critical protections go into effect,” Obama said in his widely-expected veto letter.
In a statement sent out Wednesday afternoon, Republican lawmakers accused Obama of harming the very savers he said the rule is intended to help.
“The flawed fiduciary rule will make it harder for low- and middle-income workers to save for the future, limit the ability of individuals to receive basic financial advice, and jeopardize the creation of small business retirement plans,” said Rep. Phil Roe of Tennessee. “President Obama is apparently willing to accept these painful consequences, but Republicans are not.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of 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.
