The House Financial Services Committee approved The Protecting Advice for Small Savers (PASS) Act of 2017, legislation introduced by Rep. Ann Wagner, R-Mo.
The bill establishes a standard of conduct for broker dealers that would be enforced by the SEC. Passed out of committee Thursday, the legislation also encourages state insurance regulators to adopt a similar standard for the sale of annuities.
The legislation is viewed as an alternative to the Department of Labor's fiduciary rule because it puts the SEC in charge of the issue. Wagner has introduced several versions of her bill in recent years. The first phase of the fiduciary rule went into effect June 9, but more stringent aspects of the rule are expected to be delayed until July 2019.
“The PASS Act represents an important step toward efficient and effective uniform standard of conduct regulation that would ensure Americans receive financial advice that is in their best interest while also maintaining access to the financial products and services they want and need,”said Dirk Kempthorne, president and CEO of the American Council of Life Insurers.
The PASS legislation goes to the full House for a vote. If it passes there, the Senate will be a much tougher hurdle. Democrats have been loathe to support Wagner's legislation in the past.
InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected].
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