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Financial Services Committee Examines DOL Fiduciary Rule
On Thursday, July 13, 2017, the House Financial Services Committee, Subcommittee on Capital Markets, Securities, and Investments held a hearing entitled “Impact of the DOL Fiduciary Rule on the Capital Markets.” During the hearing, members discussed the recently enacted fiduciary rule from the Department of Labor, as well as a draft bill proposed by Congresswoman Ann Wagner (R-MO) to replace this rule.
Chairman Bill Huizenga (R-MI) opened the hearing by stating his opposition to the recent Department of Labor Fiduciary Rule stating that it drives up costs and limits choices for consumers who are saving for retirement. Ranking Member Carolyn Maloney (D-NY) opposed Mr. Huizenga’s statements stating the rule is an important protection for consumers, saves consumers $17 billion per year, and repealing the rule would leave consumers vulnerable.
Much of the questioning focused on whether the rule should be delayed and the best interest of the client requirement. Many of the Members questioned how the DOL fiduciary rule would impact low or middle income people and whether the Department of Labor, or the Securities and Exchange Commission, was the more appropriate agency to lead on this issue.