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ASA Outlines Consequences of DOL Fiduciary Rule to House Financial Services Committee



WASHINGTON, D.C. – The American Securities Association (ASA), in advance of today’s U.S. House Committee on Financial Services Capital Markets Subcommittee hearing examining the U.S. Department of Labor’s (DOL) Retirement Security Rule, sent a letter to Subcommittee Chairwoman Ann Wagner (R-MO) and Ranking Member Brad Sherman (D-CA) expressing strong concerns with the Proposal and its impact of retirement savers.

 

“Members of this Committee may be forgiven for having déjà vu and wondering why the DOL is trying to rewrite ERISA without Congressional authorization. Yet, again, the DOL is trying to put lipstick on the same pig the courts have repeatedly said is illegal,” said ASA President & CEO Chris Iacovella. “The Department’s Proposal is overly broad, lacks any empirical and legal basis, and raises significant legal questions, including the Agency’s violation of the Administrative Procedure Act and the Constitution’s Appointments Clause. Congress must reclaim its authority and stop the DOL from harming Americans saving for retirement.”

 

Read the letter to the House Financial Services Subcommittee on Capital Markets here.

 

In February 2022, ASA sued the U.S. Department of Labor in federal court in the Middle District of Florida for violating the Administrative Procedure Act (APA).

 

In May 2023, the U.S. Department of Justice voluntarily dismissed its appeal after the DOL dropped its appeal following the Middle District Court of Florida striking down its proposal to change existing rules about retirement advice without a formal rulemaking.

 

 

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About the American Securities Association

 

American Securities Association, based in Washington, DC, represents the retail and institutional capital markets interests of regional financial services firms who provide Main Street businesses with access to capital and advise hardworking Americans how to create and preserve wealth. ASA’s mission is to promote trust and confidence among investors, facilitate capital formation, and support efficient and competitively balanced capital markets. This mission advances financial independence, stimulates job creation, and increases prosperity. The ASA has a geographically diverse membership of almost one hundred members that spans the Heartland, Southwest, Southeast, Atlantic, and Pacific Northwest regions of the United States.

 

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