Another Obama Administration Regulation with Negative Repercussions
‘America’s Middle Class deserves responsible solutions, not far-reaching regulations that could jeopardize the retirement security of the very people it purports to help.’
WASHINGTON, D.C. – U.S. Senate Majority Leader Mitch McConnell made the following remarks on the Senate floor today regarding the Obama Administration announcing its latest regulation that would negatively impact retirement savings:
“Today the Administration will unveil a set of regulations many believe will make it harder for low- to middle-class families to save for retirement. This regulation has been a long time coming, and there will be changes made from what was initially proposed. However, the fundamentals are likely to remain the same. If that’s the case, then here’s what we can say.
“Some have estimated that investment fees could more than double under this regulation.
“Here’s what that could mean: Access to critical retirement advice for those who can afford it, and restricted access to affordable advice — and fewer retirement savings as a result – for too many lower- and middle-class Americans.
“It reminds some people of Obamacare. Here’s why…
“Like Obamacare, it threatens to upend an entire industry, threatens to increase costs and decrease access, and threatens to hurt the very people it’s aimed at helping.
“This regulation could have the effect of discouraging investment advisors from taking on clients with smaller accounts. What that means is that smaller savers — everyday Americans trying to plan for their future — could have less access to sound investment advice. One report projects the rule could cost Middle Class families $80 billion in lost savings over the next decade.
“And already, I’ve heard from Kentuckians who fear the negative repercussions this rule could have. For example, one financial advisor in my state shared with me his concerns about how the rule, as proposed, could impact his clients:
“There’s the single mom with a daughter in college who he fears could see significant investment fee increases under the rule — increases she simply can’t afford.
“The small business, which could have a harder time accessing investment advice, potentially leading it to stop offering retirement plans to employees altogether.
“And the retirees, living off their life-savings, who could see reductions in their fixed income because of potential increases in investment costs…
“From its initial proposal at a campaign-style event to its roll-out today, this regulation seems to have always been more about politics than good policy. According to a report released by the Senate Homeland and Governmental Affairs Chairman, the Administration seems to have ‘disregarded…concerns and declined to implement recommendations’ from career, nonpartisan staff and government officials. Chairman Johnson’s report goes on to say the Administration ‘frequently prioritized the expeditious completion of the rulemaking process at the expense of thoughtful deliberation.’
“America’s Middle Class deserves responsible solutions, not far-reaching regulations that could jeopardize the retirement security of the very people it purports to help.”
Related Issues: Middle Class, Regulations