NEWS RELEASE
WASHINGTON, D.C. – U.S. Rep. Ed Whitfield (KY-01) on Thursday voted in favor of H.J. Res 88, disapproving the rule submitted by DOL relating to the definition of the term “fiduciary.” On April 6, 2016, the Department of Labor (DOL) finalized a rule that would restructure the definition of “fiduciary” for the purposes of the Employee Retirement Income Security Act of 1974 (ERISA). Proposed in order to compel financial advisors to put their clients’ best interests first, the DOL’s “fiduciary” rule is part of an effort to review rules and definitions the agency believes are outdated and not in the best interest of consumers. However, stakeholders have voiced serious concerns that the rule proposed by DOL is not the best solution to updating the definition, and could actually harm consumers by making it harder and more costly to save and invest. Whitfield released the following statement upon passage:
“I have heard from several constituents who share my concern regarding the Department of Labor’s ‘fiduciary’ rule that would add burdensome regulations and expensive mandates to the financial advisors Americans rely on for basic financial advice. Instead of encouraging the services of local advisors people know and trust, this rule encourages individuals to search for financial assistance online while also forcing small businesses to pay more in order to offer their employees retirement options. This is simply another extreme, partisan rule that runs counter to our obligation to help all Americans retire with the peace of mind they deserve.”