House lawmakers plan to convene a hearing Thursday todiscuss the impact of the Department of Labor's fiduciary rule on thecapital markets. The hearing will focus on a draftbill put forth by Rep. Ann Wagner, R.-Mo., that seeks to killthe fiduciary rule and instead impose a best interest standard onbroker-dealers' investment recommendations.
|The Consumer Federation of America sent aletter Tuesday to members of the committee expressing “strongopposition” to the measure, stating that it “would dramaticallyweaken existing protections for retirement savers without providingmeaningful new protections for investors in non-retirementaccounts.”
|Thursday's hearing will be held by the House Committee onFinancial Services Subcommittee on Capital Markets, Securitiesand Investment.
|Barbara Roper, the Consumer Federation's director of investorprotection, along with Micah Hauptman, the group's financialservices counsel, argued in the letter that Wagner's bill wouldrepeal Labor's rule “just as it is beginning to deliver the bestinterest advice that retirement savers need and deserve.”
|Since the rule was finalized more than a year ago, “firms haveannounced implementation plans that show that the rule is reducingthe cost of advice, improving the quality of investment products,and preserving access to advice through both fee and commissionaccounts for even the smallest account holders,” Roper and Hauptmanwrote.
|“Indeed, since brokers and insurance agents are now required toprovide fiduciary advice and not just self-interested salesrecommendations dressed up as advice, retirement savers' access togenuine advice has been dramatically expanded as a result of therule,” they explained.
|What's “preventing retirement savers from receiving the fullpotential benefits of the rule is uncertainty over its ultimatefate as a result of the Trump administration's reconsideration ofthe rule,” Roper and Hauptman added.
|On June 29, Labor published a request for information regardingits fiduciary rule, seeking feedback on 18 questions.
|Jerome Lombard, president of Janney Montgomery Scott's PrivateClient Group, will testify on behalf of the SecuritiesIndustry and Financial Markets Association during the Thursdayhearing before the Capital Markets Subcommittee. David Knoch,president of 1st Global, will be testifying onbehalf of the Financial Services Institute.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.