Roskam criticizes DOL's fiduciary rule
U.S. Rep. Peter Roskam (R-IL), the chairman of the House Ways and Means Oversight Subcommittee, challenged the Department of Labor's (DOL) fiduciary ruling Oct 30.
In light of the Administration proposing changes to how people receive retirement investment advice, Roskam argued that the DOL's proposed fiduciary regulation will make it even more difficult for Americans to receive investment advice.
"The Administration says this regulation will protect people from bad financial advice,” Roskam said. “That’s a good thought, and an objective we can all support. But you know what they say, 'The road to hell is paved with good intentions.' The reality is this regulation would prevent many people from getting any investment advice at all.”
Ultimately, Roskam believes that the fiduciary law would hurt a number of communities rather than help them.
"Small businesses, low- and- middle-income families, and under-served communities would be hurt by this rule far more than the wealthy. That is because the majority of small investors use financial advisers called 'broker-dealers,' who typically work on a commission basis instead of charging fixed fees up front.”
Roskam ended his statement with a comment from a Texan who also criticized the regulation. Dorothy Coleman wrote, "It’s my money, I was smart enough to save it, and I am smart enough to know how to spend it or save in my retirement."