Rep. Wagner to Introduce Bill Repealing DOL Fiduciary Rule by Sept. 30

That standard, she continued, would require recommendations made to retail customers that “reflect reasonable diligence,” as well as reflect “the reasonable care, skill and prudence that broker-dealers would exercise based on a customer’s investment profile.”

The types of compensation the advisor receives would also have to be disclosed under the bill and advisors would be required to “clarify any conflict of interest that may exist,” Wagner said.

Her legislation, she added, would state that the SEC and the Financial Industry Regulatory Authority “would become the rightful regulators and enforcers of this [best-interest] standard.”

Wagner said she’s “reaching across the aisle” to gather support for her bill.

Other Activity

At Thursday’s Chamber event, Rep. Phil Roe, R-Tenn., who introduced legislation to kill the fiduciary rule — the Affordable Retirement Advice for Savers Act (H.R. 2823), which passed the House Committee on Education and the Workforce by a 22-17 vote in late July — said he and Wagner “are working together” to stop the fiduciary rule.

Roe’s bill would require advisors to serve their clients’ best interests and institutes disclosure requirements.

Responding to a question about whether Congress would move away from dealing with any legislative solution to the fiduciary rule now that Labor is seeking comment on an 18-month delay of the rule’s Jan. 1 compliance date (to July 1, 2019), Roe said congressional action on fiduciary “will get pushed down. There’s just so much on the plate right now,” such as tax reform, hurricanes, the debt ceiling and healthcare issues.

In separate comments shared with ThinkAdvisor after his official remarks, Roe reiterated his view that fiduciary legislation would not receive priority on the Hill, stating that “Congress works on deadlines.” However, he added, “I’ll keep after this [fiduciary issue]; it’s not something I’m going to take my eye off of.”