House Financial Services Committee Chairman Jeb Hensarling, R-Texas, said Tuesday his Financial CHOICE Act that seeks to replace Dodd-Frank and kill DOL’s fiduciary rule will likely move to the House floor for a vote after the election, and that presidential candidate Donald Trump supports the legislation.
Noting that President Barack Obama still holds office and sees the Dodd-Frank Act as a pivotal achievement of his administration, “I’m not going to be delusional to think that the Financial CHOICE Act will be signed into law” in this Congress, Hensarling said during a question-and-answer session at the Securities Industry and Financial Markets Association’s annual capital markets conference in Washington.
The Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs (CHOICE) Act passed out of the House Financial Services Committee on Sept. 13 by a 30-26 vote.
During the contentious markup of the bill, Hensarling repeatedly stated his CHOICE Act offers a “better way” to economic growth and protecting investors than Dodd-Frank.
The Act would block the Labor Department from implementing its new fiduciary rule by incorporating into the bill Rep. Ann Wagner’s, R-Missouri, Retail Investor Protection Act, H.R. 1090, which passed the House last year and requires the Securities and Exchange Commission to move first on a fiduciary rulemaking before DOL can implement its fiduciary rule.
Hensarling told reporters after the Q&A at the SIFMA event that the Retail Investor Protection Act was inserted into the CHOICE act as a consumer protection measure. “We don’t want consumers to lose their decision to choose the financial advisor of their own choosing.”