GOP Lawmaker Introduces Bill to Repeal DOL’s Rule
Rep. Ann Wagner, R-Mo., has introduced a bill to kill the Department of Labor’s fiduciary rule, ThinkAdvisor reports.
The Protecting Access for Small Savers Act aims to create a best-interest standard for broker-dealers while repealing the DOL’s rule, according to the publication. The DOL’s version of the fiduciary rule, which purports to require retirement account advisors to put clients’ interests first, went into partial effect in June.
Wagner’s bill would cover all broker-dealers and all types of investment accounts, including retirement, ThinkAdvisor writes. The bill would require advisors to make recommendations that “reflect reasonable diligence,” according to the publication.
Advisors would also have to disclose the types of compensation they collect and to clarify any potential conflicts of interest, ThinkAdvisor writes. The bill would also put the power to enforce the best-interest standard into the hands of the SEC and Finra, Wagner said earlier this month, according to the publication. Earlier this week, SEC chairman Jay Clayton told lawmakers the agency is cooperating with the DOL on investment advisor standards and that an SEC fiduciary rule is at the top of its agenda.
The bill also aims to promote the establishment of a similar standard of conduct for insurance and annuity sellers at the state insurance regulator level, according to ThinkAdvisor. The industry group American Council of Life Insurers has said it welcomes Wagner’s bill, the publication writes.