The House Financial Services Committee gave its stamp of approval to the latest attempt to block the Department of Labor’s fiduciary rule. The committee passed the Protecting Advice for Small Savers (PASS) Act Of 2017, moving it a step closer to a full vote.
Congresswoman Ann Wagner, R–Missouri, one of the most outspoken critics of the DOL’s effort to impose a stricter fiduciary standard on advisors who provide retirement advice, sponsored the bill.
“Today, we moved one step closer to providing relief for low and middle-income investors and savers,” Wagner said in a statement. “The PASS Act of 2017 will finally repeal the Department of Labor’s fiduciary rule and protect main street savers by creating a best interest standard for broker-dealers that benefits consumers and protects their access to affordable investment advice.”
“In addition, the House Financial Services Committee passed H.R. 3911 with a bipartisan vote of 60-0,” she added. “H.R. 3911, the Risk-Based Credit Examinations Act of 2017, would make the criteria required in annual reporting by National Recognized Statistical Rating Organizations just that, risk-based.”
Provisions of the PASS Act include:
- Repeals the Department of Labor (DOL) fiduciary rule
- Creates a best interest standard for broker-dealers
- Requires broker-dealers to disclose compensation they receive and any conflict of interest that exists
- Limits U.S. Securities and Exchange Commission (SEC) rulemaking authority under Section 913 of Dodd-Frank
- Prevents Department of Treasury and DOL from promulgating fiduciary regulations on broker-dealers under The Employee Retirement Income Security Act of 1974 (ERISA)
- Preempts state laws avoiding a patchwork of standards
She noted a number of familiar business and industry organizations who support the act, including the U.S. Chamber of Commerce, Financial Services Roundtable (FSR), Securities Industry and Financial Markets Association (SIFMA), Financial Services Institute (FSI), National Association of Insurance and Financial Advisors (NAIFA), American Council of Life Insurers (ACLI) and the Investment Company Institute (ICI).
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.