House Ways and Means Committee Oversight Subcommittee Chair Peter Roskam (R-Ill.) told the Financial Services Roundtable he is zeroing in on young savers as among the most severe potential victims of the Department of Labor’s fiduciary rule.
Roskam said they will be particularly hurt because they will not be able to get advice at the start of their efforts to save for retirement.
The DOL's proposal would limit the products with commissions that could be included in retirement plan accounts, cutting most commissioned brokers from the business and limiting the investment advice that smaller retirement savers could get, the brokerage industry argues. Advisors who get paid fees based on assets under management won't want to provide advice to investors with small account balances, such as most young people, rule opponents say.
However, the rule's supporters say the new rule will help ensure that investors get the advice that is best for them by eliminating conflicts of interest.
Roskam accused supporters of spreading a false narrative “either you are for the DOL fiduciary rule or you are against all regulation.”