The same day the Department of Labor’s rule to redefine fiduciary on retirement advice landed at the Office of Management and Budget for review, the House Education & Workforce Committee said Friday it would mark up bills on Feb. 2 that would replace DOL’s rule.
The committee, chaired by Rep. John Kline, R-Minn., will hold a Tuesday hearing to mark up H.R. 4293, the Affordable Retirement Advice Protection Act, introduced by Rep. Phil Roe, R-Tenn., and H.R. 4294, the Strengthening Access to Valuable Education and Retirement Support Act, introduced by Rep. Peter Roskam, R-Ill.
Kline said in announcing the markup that the “complementary, bipartisan proposals will require financial advisors to serve their clients’ best interests and protect access to high-quality, affordable retirement advice.”
The proposals provide a “responsible legislative alternative” to the DOL’s “controversial” fiduciary plan.
As anticipated, DOL sent late Thursday its rule to redefine fiduciary on retirement advice to OMB for its mandatory review.
Arrival of the rule, formally the Conflict of Interest Rule — Investment Advice, was announced on OMB’s website Friday morning. If, as industry observers expect, the office undertakes an expedited, 50-day review rather than the typical 90-day review, DOL would issue the rule before April.
The U.S. Chamber of Commerce sent a letter to OMB Friday afternoon, stating that it is particularly concerned about the “disproportionate and adverse impact” DOL’s rule will have on small businesses and DOL’s “failure to properly assess the economic impact of the notice of proposed rulemaking on small businesses.”
The Chamber told OMB that it should direct DOL to republish a Supplemental Initial Regulatory Flexibility Analysis (IRFA) “that remedies the errors and omissions identified in the inadequate current version, and receives and considers public comments on the republished IRFA.”
Agencies are required to submit IRFAs to detail the impact on small businesses of a rulemaking and to lay out any alternatives that would ease the burden on them.
“Should DOL refuse to republish the IRFA, we would otherwise request that the Office of Information and Regulatory Analysis (OIRA) within OMB conduct an independent economic impact analysis on the proposed rule’s impact on small businesses.”
— Check out DOL Fiduciary Rule Lands at OMB for Review on ThinkAdvisor.