Rep. Wagner Statement on the Introduction of the Retail Investor Protection Act
Washington, D.C. – Congresswoman Ann Wagner today introduced the Retail Investor Protection Act in the U.S. House of Representatives:
“Earlier this week, President Barack Obama and Senator Elizabeth Warren (D-MA) presented a solution in search of a problem by proposing another massive rulemaking from Washington that will harm thousands of low and middle income Americans’ ability to save and invest for their future. This top-down, Washington-centered rulemaking against financial advisors and broker dealers will harm the very middle income families that Senator Warren and President Obama claim to protect.
“In order to prevent Senator Warren and President Obama from harming middle income Americans, today I introduced the Retail Investor Protection Act (RIPA) in the United States House of Representatives. Americans should be given more freedom to seek sound financial advice without Senator Warren and President Obama’s interference.
“Americans are tired of Washington’s closed approach to growing their own personal economy and limiting their access. We need to open it up, provide Americans more choices, affordability and freedom to grow and save for the future. Unfortunately this kind of Washington-knows-best approach is typical of this President.
“Earlier this month, they proposed taxing 529 College Savings Plans, which regularly help middle income Americans save for their children's education and now the President and Senator Warren seek to restrict middle-income Americans’ access to financial advice – it’s more of the same.”
The new legislation will follow the same structure as legislation passed last Congress with the support of 30 Democrats in that the SEC would be required to go first in issuing a rulemaking under Section 913 of Dodd Frank before the DOL is able to propose a rule expanding the definition of a fiduciary under ERISA. In addition, the SEC would be required to look into potential issues with a rule making establishing a uniform fiduciary standard in regards to investor harm and access to financial products that were not adequately addressed in the agency’s 2011 study. Finally, the SEC would be required to look into other alternatives outside of a uniform fiduciary standard which could help with issues of investor confusion.