Gregory Korte

USA TODAY

WASHINGTON — President Obama vetoed an effort to roll back new rules intended to protect retirement savings Wednesday, solidifying his administration's regulations requiring investment advisers to look out for their clients' best interests.

"The Department of Labor's final rule will ensure that American workers and retirees receive retirement advice that is in their best interest, better enabling them to protect and grow their savings," Obama said in a veto message to Congress. "It is essential that these critical protections go into effect."

It was Obama's third veto this year, and the 10th of his presidency. Half of those vetoes have been on similar attempts to block his executive actions on issues like greenhouse gas emissions, clean water and union elections.

In this case, congressional Republicans had sought to use a rarely successful maneuver under the Congressional Review Act to overturn what's known as the fiduciary rule, a Department of Labor regulation prohibiting investment advisers from selling products with higher fees or lower returns just because they yield higher commissions.

New rules for financial advisers prohibit conflicts of interest

Republicans said the rules would make it harder for lower- and middle-income workers and retirees to find investment advice because firms would have less incentive to cater to those markets. "Higher costs and a more burdensome system also means more expenses for small businesses trying to sponsor retirement plans for their employees,” Sen. Orrin Hatch, R-Utah, said in urging the Senate to pass the resolution last month.

The effort to block the regulations passed the House by a party-line vote of 234-183 and the Senate 56-41, with three Democrats joining the Republicans. Both margins fall well short of the number needed to override the veto, ensuring that the rule will stand.