The House Committee on Education and the Workforce today advanced a resolution to overturn a Department of Labor final rule that expands fiduciary status to nearly all financial professionals. H.J. Res. 142, introduced by Rep. Rick Allen (D-Ala.), would overturn the department’s decision in April to broaden the definition of an investment advice “fiduciary” under the Employee Retirement Income Security Act, if the resolution is approved by both houses of Congress and signed by the president. The committee voted 23-18 to advance the resolution.
The American Bankers Association and 12 associations in May urged senators and House lawmakers to overturn the DOL rule. “Given the DOL’s blatant disregard for the limitations on its authority as established by Congress and the federal courts, Congress would clearly be justified in passing the CRA resolutions to disapprove the final rule,” they said.
