During a hearing yesterday on the Department of Labor’s rule redefining who counts as a fiduciary under the Employee Retirement Income Security Act, House Financial Services Committee Chairman Jeb Hensarling (R-Texas) signaled that the committee would move on legislation requiring DoL to hold off on the rulemaking. The bill, introduced earlier this year by Rep. Ann Wagner (R-Mo.), would require DoL to wait 60 days after the Securities and Exchange Commission issues its final rule before making its own rule.
“This regulation will ultimately jeopardize the ability of families to achieve their goals of financial independence and retirement security,” Hensarling said. “By advancing [Wagner’s] bill, H.R. 1090, the committee will provide Americans with more choices and greater freedom to save for their future.” A similar bill passed the House with a bipartisan majority in the previous Congress.
ABA has strongly urged DoL to withdraw its proposed rule, arguing that it would hinder banks’ ability to offer 401(k)s, IRAs and retirement financial planning to their customers and thus limit the choices available to everyday retirement savers.