On July 13, the House Financial Services Subcommittee on Capital Markets, Securities, and Investment held a hearing entitled “Impact of the DOL Fiduciary Rule on the Capital Markets.”

The fiduciary rule protects retirees and retirement savers from unscrupulous financial advisors. Before the fiduciary rule, conflicted financial advice cost Americans around $17 billion a year. In June, House Republicans passed a bill, H.R. 10, which Democrats call the “Wrong Choice Act,” to dismantle Wall Street Reform and remove the fiduciary rule.

Congresswoman Maxine Waters (D-CA), Ranking Member of the Committee on Financial Services, has been a longtime supporter of the rule, and has opposed efforts to weaken or impede it. In her questions at the hearing, Ranking Member Waters highlighted the fact that the fiduciary rule closed loopholes that had negatively impacted retirees and retirement savers.

“The Fiduciary rule simply ensures that families aren’t ripped off when investing their hard-earned retirement savings,” said Ranking Member Waters. “I will fight against any effort to undermine or repeal this rule, which is so important for retirees and those saving for retirement.”

During the hearing, Republicans and their witnesses advocated for repealing the rule and replacing it with weak regulation that favors advisors' profits over seniors' savings. In response, the Democratic witness, Ms. Cristina Martin Firvida, Director of Financial Security and Consumer Affairs at AARP, cited overwhelming support for the rule, including from lower and middle-income retirement investors who need every penny of their retirement savings.

In the photo, Ranking Member Waters is pictured with AARP Director of Financial Security and Consumer Affairs Cristina Martin Firvida (the Democratic witness at the hearing) and AARP members.

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