[Congressional Record Volume 147, Number 161 (Tuesday, November 27, 2001)]
[Extensions of Remarks]
[Page E2137]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    H.R. 2269--INVESTMENT ADVICE ACT

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                            HON. BRIAN BAIRD

                             of washington

                    in the house of representatives

                       Tuesday, November 27, 2001

  Mr. BAIRD. Mr. Speaker, over the last twenty years the influx of 401k 
plans has changed the pension landscape. When the ERISA laws were 
written back in 1974, we had no idea how popular 401k plans would 
become. And as the popularity grows for these plans, the need for 
quality investment advice becomes ever more vital to the retirement 
plans of pension holders. Although there are many avenues to obtain 
information about stocks and bonds, many people lack the knowledge to 
filter out the good information from the bad. Most people do not have 
the time necessary to investigate the nuances of the market to make 
informed decisions about market purchases. This is why we need to turn 
to professionals. Our pensions are too important to American workers 
and families these days to let this problem go unresolved. That is why 
I strongly support the Investment Advice Act that is before this body 
today.
  I recognize there is some contention about the conflict of interest 
between the adviser's and the interest of their clients. However, this 
legislation specifically requires that a ``fiduciary adviser'' be 
personally liable for any failure to act solely in the interest of the 
worker. Furthermore, investment advisers will be subject to the highest 
form of fiduciary duty under the law, including civil and criminal 
enforcement by the Labor Department. I believe these safeguards protect 
our employees and mandate professional advisors to work in the best 
interest of their clients.
  Mr. Speaker, in the end, it is my belief that the Investment Advice 
Act will increase the value of pensions for working Americans. I 
believe this act will lead Americans into a healthier and happier 
retirement. And lastly, I believe that Americans want and need access 
to professional financial advice.

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