LaHood slams new fiduciary rule

Posted on April 6, 2016
Darin LaHood
U.S. Rep. Darin LaHood says the Obama administration has gone too far with new Labor Department rules. (Photo by Laura Ewan/WJBC)

By Eric Stock

BLOOMINGTON – U.S. Rep. Darin LaHood, R-Peoria, said the Obama administration’s new rules regulating brokers would lead to more costly compliance all because of a few bad apples.

PODCAST: Listen to Scott’s interview with LaHood on WJBC.

“What this is doing is blanketing everybody across the country because of maybe a minor problem with a few of these financial institutions,” LaHood said. “This is an example of overdoing things and something that couldn’t pass through the Congress.”

The Obama administration rules set stricter standards for brokers who recommend investments for retirement savers by requiring them to meet the “fiduciary standard.”

“This is taking a sledgehammer to a problem where you are trying to kill a flea,” LaHood said.

LaHood was scheduled to talk with employees at State Farm in Bloomington on Wednesday. He said he will telling them the rules will punish all brokers because of a few shady ones.

The rules issued on Wednesday by the Labor Department would take effect next year with full implementation set for 2018.

Eric Stock can be reached at [email protected].

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