Rep. Ann Wagner (R-MO) introduced legislation on Sept. 27 that would repeal the Department of Labor’s fiduciary rule and create a new standard of conduct for brokers and dealers.
Wagner has had her sights set on rolling back the fiduciary regulation since 2015, when she first introduced legislation to repeal the regulation. Earlier this year she released a discussion draft of the current legislation, and the House Financial Services subcommittee held a hearing on the measure in July.
Wagner's Protecting Advice for Small Savers (PASS) Act of 2017 would:
- repeal the fiduciary rule;
- create a best interest standard for broker-dealers;
- require broker-dealers to disclose compensation they receive and any conflict of interest that exists;
- limit the SEC’s rulemaking authority under Section 913 of Dodd-Frank;
- prevent the Treasury and Labor departments from promulgating fiduciary regulations on broker-dealers under ERISA; and
- preempt state laws, avoiding a patchwork of standards.
“America is in the midst of a savings crisis and this legislation will ensure it is easier for families to save and invest, not harder. At the end of the day, every family should have access to affordable investment products and the confidence that their best interest is being served,” Wagner said in introducing the legislation.
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Wagner’s bill comes on the heels of a hearing before the Senate Banking, Housing and Urban Development Committee at which SEC Chairman Jay Clayton said that harmonizing a fiduciary rule with the Labor Department is a top priority for him and laid out steps the SEC plans to take to do so.