Labor Secretary Tom Perez has been lobbying Democrats in Congress lately, advocating for the redefinition of fiduciary rule (now referred to as the “conflict of interest rule” by DOL officials) promulgated by his department’s Employee Benefits Security Administration, InvestmentNews reports.
Over the last month, Perez has been meeting with congressional Democrats to assuage their concerns about the reproposed rule’s impact on the availability of advice, particularly for investors with modest retirement assets. ASPPA and NAPA oppose the redefinition rule in its current state.
"It's pretty clear that the Secretary's lobbying efforts, which are unprecedented with respect to any previous DOL retirement policy regulation, reflect a firm commitment on his part to push forward the new ERISA fiduciary standard,” says Brian Graff, executive director/CEO of ASPPA and NAPA. “He would not be wasting his time meeting with so many senators otherwise. Needless to say, NAPA is meeting with the same Democratic senators to remind them there is very much another side to this story."
One observer quoted in the report speculates that last month’s delay in the rule’s target issuance date — from this spring until sometime in August — was instigated by Perez, and that there is “clearly internal debate and clearance issues” regarding the rule. Another believes that “it’s increasingly uncertain” that the rule will be reproposed, citing not only the delay in a rule that ostensibly was nearly ready to go in November, as well as the possibility that in the wake of Obamacare there is reluctance on the part of the Obama administration to roll out a complex regulation that could have unintended consequences.
