Senate Votes to Repeal the DOL's New Fiduciary Rule
The U.S. Senate has voted to repeal the Department of Labor’s new fiduciary rule, the Hill reports.
On Tuesday senators passed a resolution 56 to 41 votes to this effect.
Last month, the House of Representatives passed an identical resolution.
Republicans control both houses of Congress and the resolution.
Though passed in Congress, the repeal probably won’t stand. President Barack Obama has said he will veto attempts to derail the legislation, as reported previously.
The senate could only avoid an executive veto if it had reached a two-thirds majority, or 67 votes, in its attempt to appeal the rule, reports the Hill. The House would need a similar two-thirds majority.
On April 6, the DOL finalized its fiduciary rule, which now requires retirement-investment advisors to meet a fiduciary standard and act in the best interest of their clients.
Ever since, some Republican leaders and industry participants have pushed back. They say the rule will be a financial burden for brokers because costs associated with retirement advice will be unaffordable for many Americans, according to Reuters.
Speaking in opposition to the vote on the Senate floor on Monday, Sen. Elizabeth Warren, D-Mass., said the congressional push to repeal the retirement-advice rule stems partly from the desire of Republican legislators — many facing re-election campaigns this fall — for financial support from securities-industry lobby groups, the newswire reports.
Ahead of the vote Tuesday, Majority Leader Mitch McConnell, R-Ky., accused the Administration of too often creating regulation that ends up "hurting the very Americans they purport to help,” the Hill reports.