Date: 2015-10-27
Speaker: MAXINE WATERS (democrat)
Chamber: H
State: California

Mr. Speaker. I yield myself such time as I may consume. I think it is important for me to correct the RECORD about the U.K. investment advice experience. In predicting the worst outcome from the Department of Labors rulemaking. my Republican colleagues frequently cite the United Kingdom. They argue small investors will lose access to their investment advice. Let me set the record straight. According to outside consultants for the U.K. Financial Conduct Authority: Eliminating commissions has reduced investment bias and has contributed to an improvement in the quality of advice. There is now more competitive pressure and lower product costs. and far from having an advice gap. there is excess capacity of about 5.000 advisers in the U.K. market today according to an analysis by Towers Watson. There is no evidence that consumers have been forced to go without advice as a result of the regulation. I fear that we are comparing apples to oranges. That is becauseunlike the U.K. regulationthe DOL proposal is a modest update that does not ban commissions. Rather. the proposal seeks to simply ensure that persons providing retirement investment advice put the interests of their clients ahead of their own. This debate touches on a fundamental disagreement we continue to have in our respective parties. On the one hand. Democrats are acting on the belief that government should be the guardian of the interests of the people. It is a belief grounded in a fundamental truth: that our economy thrives with a rapidly growing and diverse middle class. For the middle class to grow. the American public must have confidence in our markets and be protected from bad actors. On the other hand. Republicans continue to act to protect the interests of a free market. driven by profit. even if it comes at the expense of the retirement savings of hardworking Americans. But we have seen the impact of the Republican free market on our economy. most recently in 2008. when the big banks on Wall Street. left to their own devices. caused the worst economic collapse in a generation. one that destroyed nearly $16 trillion in household wealth and 9 million jobs. displaced 11 million Americans from their homes. and doubled the unemployment rate. And yet my colleagues insist on advancing measures like H.R. 1090. which would encourage the continued exploitation of American workers and retirees on behalf of some financial advisers who put their own interests in profits first. The current rules governing the provision of retirement investment advice allow conflicts that harm everyday Americans working hard to ensure that they can retire with dignity. Every moment we delay in updating those rules. unscrupulous advisers benefit $1.4 billion a month at the expense of those everyday Americans. With such large industry profits at stake. this issue will continue to be a prime target for the Republican majority. But I encourage my colleagues to resist those who are more interested in lining their pockets than protecting the interests of American retirees and workers. I urge my colleagues to join me in voting "no" on H.R. 1090. Mr. Speaker. I yield back the balance of my time.