House GOP Presses DOL on Fiduciary Details

Another group of House Republican lawmakers jumped into the fiduciary fray this week, requesting the Department of Labor release any changes to its fiduciary only rule by Oct. 21.

In a letter signed by 105 GOP House members, Reps. Sam Johnson, R-Texas, and Mike Kelly, R-Pa., urge the DOL to correct “shortcomings” in its proposal. The lawmakers also emphasized the importance of letting the public view the changes before the final rule is officially released.

“Prohibited transaction rules have the potential to significantly disrupt and limit what has been routine access to financial guidance and investment advice,” the letter states.

A DOL spokesman declined to comment.

Johnson and Kelly both serve on the House Ways and Means Committee, which held a hearing on the fiduciary proposal last week. The lawmakers said they “support the creation of a best interest standard.”

“However, we have serious reservations that the details of the current proposal will severely disrupt the availability of affordable financial education and investment advice,” the letter states.

At one point, it seemed as though congressmen from neither party liked the DOL proposal. Last month, 96 Democrats signed a letter asking DOL Secretary Thomas Perez to make significant changes to the rule.

The Democrats have since resumed supporting Perez and the administration, which has said it wants to pass the rule before President Barack Obama leaves office in January 2017.

Perez has signaled a willingness to incorporate changes culled from the thousands of comments received prior to the Sept. 24 deadline. But, in their letter, opponents to the rule indicate they are worried they will not see those changes until the final rule is released.

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at john.hilton@innfeedback.com.

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InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at john.hilton@innfeedback.com. Follow him on Twitter @INNJohnH.