Critics of the DOL’s rule argue its extensive disclosure and prohibited transaction requirements will make low-value accounts too expensive to administer for IRA and plan providers.

Consequently, low and middle-income Americans with small retirement accounts will struggle to get access to retirement advice, say the critics.

A recent report from analysts at Morningstar estimated up to $600 billion of low-value IRA accounts would be let go by full-service wealth management firms if the DOL’s rule is finalized as proposed.

A portion of those accounts would likely find a home in passively managed investments offered by robo-advisors, which stand to benefit from the rule, Morningstar’s report said.

The “declaration of principles” that the four Congressional members plan to use to craft replacement legislation to the DOL rule do not go nearly far enough to ensure Americans are protected from conflicts of interest in the financial advice they get, says the Financial Planning Coalition.

“These principles refer only to disclosure of conflicts of interest; but are completely silent on a fundamental component of the fiduciary standard-- an obligation to mitigate compensation practices and incentives that give rise to conflicts of interest,” says the Financial Planning Coalition’s letter to Congress.

The Coalition also warns against the tactic of attaching an appropriations rider to the omnibus funding bill, which will direct exactly how money in the bi-partisan budget bill that was recently signed into law will be spent.

The omnibus bill is needed by December 11 in order to avoid a government shutdown.

Supporters of the DOL’s fiduciary rule have long considered an appropriations rider the primary arrow in the quiver of opponents to the rule.

See all BenefitsPro coverage on the Department of Labor proposed fiduciary rule