WASHINGTON (Apr. 26, 2016) — NAFA, the National Association for Fixed Annuities, announced official support for Congressional resolutions issued in both the House and the Senate last week that stand to derail the Department of Labor’s recently finalized rule on investment advice for retirement accounts. Offered under the Congressional Review Act, which allows Congress to halt a rule within 60 legislative days of its release, these measures highlight widespread concern that the fiduciary rule stands to harm the very individuals and businesses it purports to protect.
“Given the dramatic response by elected officials, industry professionals, small business owners and consumers alike, NAFA hoped the DOL would have made changes to ensure a workable outcome of the rule. Unfortunately, that wasn’t the case,” said Chip Anderson, Executive Director of NAFA. “We commend Senator Isakson and Representative Roe for introducing resolutions of disapproval and encourage their passage. Congressional support is critical as we advocate for maintaining saver and small business access to the products and professionals that can secure their future.”
The Senate introduced S.J. Res. 33 on April 19, while the House followed suit the next day with H.J. Res. 88. A resolution of disapproval needs a simple majority to pass, and cannot be filibustered or amended if acted upon during the 60-day window. However, these resolutions face an almost certain veto by President Obama.
Anderson noted, “It is clear a congressional solution is needed. We support efforts to overturn this rule and start from a clean slate with bipartisan legislation in Congress that would create a workable best interest standard for consumers.”