Legislation passes the house; Vote on Bill Shows Deep Concern with DOL’s Fiduciary Rule Proposal
WASHINGTON, D.C. – The Insured Retirement Institute (IRI) released the following statement from IRI President and CEO Cathy Weatherford after the House of Representatives voted to pass the Retail Investor Protection Act (H.R. 1090).
The bill, sponsored by Rep. Ann Wagner (R-Mo.), would require the Department of Labor (DOL) to wait to issue its fiduciary rule until after the SEC adopts its own rule.
Statement from IRI President and CEO Cathy Weatherford:
“We believe today’s vote shows the deep concern with the Department of Labor’s fiduciary rule proposal. Members of Congress in both chambers, on a bipartisan basis, have written letters to the DOL expressing concern that the proposal will restrict retirement savers’ access to retirement planning advice and limit their choice on retirement products, including lifetime income strategies that help Americans ensure their savings last throughout all their retirement years. We appreciate Congresswoman Wagner’s leadership on this issue. She has a passion for protecting retirement savers and understands the important work financial professionals do to help their clients prepare for and achieve financial security in retirement.”
Summary of HR 1090
- Retail Investor Protection ActWe appreciate Congresswoman Wagner’s leadership on this issue. She has a passion for protecting retirement savers and understands the important work financial professionals do
Prohibits the Secretary of Labor from prescribing any regulation under the Employee Retirement Income Security Act of 1974 (ERISA) defining the circumstances under which an individual is considered a fiduciary until 60 days after the Securities and Exchange Commission (SEC) issues a final rule governing standards of conduct for brokers and dealers under specified law.
Amends the Securities Exchange Act of 1934 to prohibit the SEC from promulgating a rule establishing an investment advisor standard of conduct as the standard of conduct of brokers and dealers before it reports to certain congressional committees whether:
- (1) retail investors and other customers are being harmed due to brokers or dealers operating under different standards of conduct than those applicable to investment advisors under the Investment Advisers Act of 1940;
- (2) alternative remedies will reduce any confusion or harm to retail investors due to brokers or dealers operating under such different standards of conduct;
- (3) adoption of a uniform fiduciary standard of conduct for brokers or dealers and investment advisors would adversely impact their commissions and the availability of proprietary products offered by brokers and dealers, as well as the ability of brokers and dealers to engage in principal transactions with customers; and
- (4) adoption of a uniform fiduciary standard of conduct for brokers or dealers and investment advisors would adversely impact retail investor access to personalized, cost-effective investment advice and recommendations.
Requires the SEC: (1) to publish in the Federal Register formal findings that such rule would reduce retail customer confusion or harm due to standards of conduct applicable to brokers, dealers, and investment advisors; and (2) in proposing rules to consider the differences in the registration, supervision, and examination requirements applicable to brokers, dealers, and investment advisors.