A group of Republican senators, led by Sen. Joe Manchin (D-West Virginia), are now attempting to overturn a Labor Department regulation on retirement investment planning that was finalized last month.
The new rule, which would amend the definition of an investment advice fiduciary as stipulated in the Employee Retirement Income Security Act, was introduced by the Labor Department last month.
Together with fifteen Republican senators, Manchin co-sponsored a resolution under the Congressional Review Act (CRA) that aimed to nullify this recently implemented regulation.
Manchin claimed that the rule would make Americans “lose access to investment advice due to how broadly the rule defines fiduciary.”
“This Department of Labor rule is yet another example of dangerous federal overreach. While I understand the Administration’s intent to protect Americans’ retirement savings, the truth of the matter is this does the exact opposite,” Manchin said.
According to the department, under the new rule, these fiduciaries must refrain from making recommendations that favor the financial or non-financial interests of the investment advice providers at the expense of the retirement investors.
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