Labor Secretary Alexander Acosta testified before the House Committee on Education and Labor Wednesday about the department’s budget and priorities for the upcoming fiscal year.
In one particularly tense exchange, Rep. Marica Fudge, D-Ohio, asked Acosta to describe efforts to ensure fiduciary protection for investors.
“You are correct,” Acosta answered before attempting to provide background on the DOL’s fiduciary rule, as well as the SEC’s role. “Like all industries, the investment industry has some bad actors and individuals need to be protected. As you are aware, the fiduciary rule was struck down by a court. It was held to exceed the statutory …”
“I just want to know what you are going to do, sir,” Fudge interjected.
“I’m getting to that, Congresswoman,” a clearly annoyed Acosta shot back.
“I have five minutes, so if you could just …” the Congresswoman said.
“I understand,” Acosta continued. “So, it was struck down by the court, so the department is working with the SEC. The SEC was asked by Congress to look at modernizing the protection …”
“Sir, I’m asking, ‘what are you going to do?’” Fudge again interrupted. “What is your Department of Labor going to do?
“Congresswoman, if you’ll let me finish my sentences …” the secretary objected.
“I need to reclaim my time,” Fudge explained. “I have more questions to ask.”
“So, the Department of Labor is working with the SEC,” Acosta explained. “The SEC was asked by Congress to come up with appropriate responses to protect these individuals. We are communicating with them and based on our collaborative work, will be issuing new rules in this area.”
“When will that be?” the Congresswoman queried.
“Well, the SEC is in the process of producing those rules. The SEC is …”
“Just a time would be great,” she pressed.
“Congresswoman, we’re working with an independent agency …”
“Okay, so you don’t have a time,” Fudge concluded. “Let me just move to my next question.”
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.