House GOP seeks to block stricter rule on retirement savings
WASHINGTON (AP) -- The GOP-controlled House has voted to overturn new Obama administration rules requiring stricter standards for brokers about retirement investments.
The 234-183 vote to reject the rules was backed by Republicans who warn it will limit options available to investors and could cause brokers to abandon retirement savers with smaller accounts.
The new rules require brokers to act as so-called fiduciaries that put their clients' best interests first, rather than steering them toward investments with higher fees for the broker. At stake are about $4.5 trillion in 401(k) accounts and more than $7 trillion in IRAs. Problems often occur when people who are retiring "roll over" their 401(k)s into individual retirement accounts and are sold questionable products.
President Barack Obama has promised to veto the bill.