Legislation passed Tuesday on a mostly party-line 56-41 vote would block new Obama administration rules requiring financial advisers to put their client’s best interest first when giving advice on retirement investments like individual retirement accounts.
The regulations are intended to prevent financial advisers from steering clients toward investments with higher commissions and fees that can eat away at retirement savings.
Republicans say the rules would set a new fee structure that might not be worth the broker’s trouble, and consumers won’t be able to get the advice they want. Instead, opponents say, retirees might have to seek higher-priced advice or fend for themselves. They point to the experience of Great Britain, which has imposed a similar regulation.
The White House says President Obama will veto the Senate measure, which moved forward under a special process that didn’t allow Democrats to filibuster it. The House passed the legislation last month on party lines.