Rounds Votes to Stop Harmful Fiduciary Rule That Would Limit Availability of Retirement Advice

WASHINGTON—U.S. Senator Mike Rounds (R-S.D.), a member of the Senate Banking Committee, today voted to block the fiduciary rule issued by the Department of Labor (DOL) last month. The resolution of disapproval, which requires a simple majority vote, passed 56-41. Having passed the House of Representatives last month, it now heads to President Obama’s desk.

“The administration’s fiduciary rule will have harmful consequences for South Dakota families saving for retirement, which is why I support the resolution of disapproval passed by the Senate today,” said Rounds. “By requiring financial advisors to become fiduciaries, this rule will limit the availability of retirement investment advice for millions of people, especially low-and-moderate-income Americans. The many regulations issued by the Obama administration consistently place undue financial burdens on already-overtaxed Americans, and the fiduciary rule is no different.”

In May 2015, Rounds, along with 35 senators, sent a letter to DOL Secretary Thomas Perez requesting the DOL revise its proposed fiduciary rule and extend the comment period.  In October 2015, DOL agreed to rework its proposed rule. Unfortunately, the proposed rule will leave many without critical access to quality retirement advice.

Rounds is a cosponsor of S. 2502, the Affordable Retirement Advice Protection Act, and S. 2505, the Strengthening Access to Valuable Education and Retirement Support Act, both of which aim to establish more workable fiduciary standards and prevent the DOL’s proposed fiduciary rule from being implemented.  

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