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Capitol Hill Puts the Fiduciary Rule in its Sights

New legislation would push back — way back — implementation of the Department of Labor’s (DOL) fiduciary rule.

Rep. Joe Wilson (R-S.C.) on Jan. 6 introduced H.R. 355, the Protecting American Families’ Retirement Advice Act.

In announcing the bill, Wilson said “The Department of Labor’s fiduciary rule is one of the most costly, burdensome regulations to come from the Obama Administration. Rather than making retirement advice and financial stability more accessible for American families, they have disrupted the client-fiduciary relationship, increased costs, and limited access.”

The bill
is all of two pages long. It addresses the effective date of the rule, noting, “Notwithstanding the effective date set forth in the rule submitted by the Department of Labor relating the ‘‘Definition of the Term ‘Fiduciary’; Conflict of Interest Rule-Retirement Investment Advice’’ (published at 81 Fed. Reg. 20946 (April 8, 2016)), such rule shall not take effect until the date that is 2 years after the date of enactment of this Act.”

Wilson said, “This legislation will delay the implementation of this job-destroying rule, giving Congress and President-elect Donald Trump adequate time to re-evaluate this harmful regulation.”

Committee Action

H.R. 355 is now before the House Ways and Means Committee and the House Committee on Education and the Workforce. The rule also has made GOP Education and the Workforce members’ list of reckless rulemakings.

Referring to the DOL fiduciary rule as “misguided,” a press release notes that at a time when too many Americans are already struggling to plan for retirement, “the Obama administration advanced a partisan rule that makes it even more difficult for hardworking men and women to save for the future.”

Committee Chairwoman Virginia Foxx (R-N.C.) is quoted as saying, “The Department of Labor’s fiduciary rule will significantly impact the ability of Americans to receive advice on how to save for retirement and make it more difficult for businesses, in particular small businesses, to establish retirement plans.”