Bill Would Repeal Fiduciary Rule, Part of Dodd-Frank
A bill that would repeal some of the major provisions of Dodd-Frank and the DOL’s fiduciary rule will move to the House floor for a vote this week, something that did not happen in previous sessions for similar legislation. That said, even if the House passes it, its chances in the Senate are bleak.
The Financial CHOICE Act (H.R. 10)
was introduced by Rep. Jeb Hensarling (R-TX) on April 26; the House Committee on Financial Services filed a supplemental report on it on June 2. The bill includes provisions that would:
- repeal the Volcker rule, a provision that prohibits federally insured banks from making certain risky investments with their own funds;
- make it harder for shareholders to bring proposals to a vote at annual meetings;
- rename and revamp the Consumer Financial Protection Board (CFPB) by making its director subject to removal at will by the president and put Congress in charge of its spending; and, most notably,
- repeal the DOL’s fiduciary rule.
The CBO scored H.R. 10 as cutting the deficit by $24 billion over 10 years, but also shrinking revenue by $5.9 billion.
Note that H.R. 10 does not appear to touch Section 989 of Title IX of Dodd-Frank, otherwise known as “the Harkin Amendment,” which exempted equity indexed annuities from SEC oversight.Ray Harmon is Government Affairs Counsel of the American Retirement Association.