WASHINGTON, DC — Tomorrow, Republicans on the U.S. House Education and Workforce Committee are expected to advance H.J. Res. 142, a Congressional Review Act resolution to block the U.S. Labor Department’s crackdown on junk fees in retirement investment advice – an effort that will save retirement plan participants an estimated $55 billion in fees over ten years. The effort driven by right-wing lawmakers deep in the pocket of the financial industry follows a lawsuit filed earlier this month seeking to block the new rule from Washington D.C.-based Financial Services Institute (FSI) and New York City-based Securities Industry and Financial Markets Association (SIFMA) in the Northern District of Texas. A new analysis from government watchdog Accountable.US found SIFMA and the National Association of Insurance and Financial Advisors (NAIFA), another industry group opposed to the new rule, spent $13.1 million while lobbying against the Obama and Biden administrations’ fiduciary rules since 2017, while companies represented on the board of SIFMA have spent $129.1 million while also lobbying against different iterations of the fiduciary rule.

This resolution was written by and for Wall Street lobbyists, and any vote for it is a vote against increasing retirement savings for middle-class workers. Rubber-stamping this resolution means giving greedy retirement advisors a free pass to put their own interests ahead of their clients – undermining retirement security for millions. Right-wing lawmakers are eager to do the dirty work of their big bank megadonors while saying no to lower costs for everyday families. These Members should answer why they believe the workers they represent are undeserving of the same quality of advice from their financial advisors.”

Accountable.US’ Liz Zelnick

FSI and SIFMA, groups representing Wall Street investment advisors and banks, sued the Biden administration in the jurisdiction of the Fifth Circuit Court of Appeals, the right-wing court that frequently sides with industry over regulators. This includes an early June ruling in favor of wealthy private-equity and hedge fund managers that sued to block Securities and Exchange Commission (SEC) regulations adopted last year which boost transparency between private fund advisers and investors regarding fees, expenses, and performance; and bans certain practices contrary to the public interest like undisclosed preferential treatment.  

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