House Votes to Hold Up DOL’s Fiduciary Rule
The U.S. House of Representatives passed legislation Oct. 27 that would block the Department of Labor from finalizing its fiduciary proposal until the Securities and Exchange Commission weighs in.
By a 245-to-186 margin
, the House passed the Retail Investor Protection Act of 2015
(H.R. 1090), which was introduced by Rep. Ann Wagner (R-Mo.)
earlier this year
. The bill would require the DOL to wait 60 days after the SEC publishes a rule regarding brokers’ fiduciary duty before releasing its version.
“The Obama Administration and the Department of Labor believe that the American people need to be protected from themselves, that they are not smart or capable enough to control their own retirement savings,” said Wagner
following passage of the bill. “My constituents are tired of Washington bureaucrats telling them what food their families should eat, where they should turn for health care and, now, how they should save for retirement. I for one refuse to stand by and let this Administration advance another regulation that ultimately takes away our freedoms.”
The vote on the bill fell along almost completely partisan lines: three Democrats — Reps. Brad Ashford (Neb.), Henry Cuellar (Texas) and David Scott (Ga.) — backed the measure, and two Republicans — Walter Jones (N.C.) and Kenny Marchant (Texas) — voted against it.
It’s doubtful the measure will go further, however. The House passed similar legislation in 2013, but the Senate did not take it up.
President Obama has already threatened to veto the bill. “This legislation puts a roadblock in the way of preventing such harmful conflicts, which hurts businesses, consumers, and retirees and their families,” the White House said in a statement.