Labor Secretary Alexander Acosta signaled Wednesday that the Labor Department will issue new fiduciary-related rules.
In an exchange during an oversight hearing held by the House Education and Labor Committee, Rep. Marcia Fudge, D-Ohio, questioned Acosta on Labor’s fiduciary plans.
Acosta said that Labor is collaborating with the Securities and Exchange Commission as it works on its advice-standards package, which includes Regulation Best Interest, and that “based on our collaborative work, we will be issuing new rules in this area.”
Here is Acosta’s exchange with Rep. Marcia Fudge, D-Ohio:
“For far too long, certain, not all, retirement advisors have put their interest above their clients. Workers across this country are demanding a higher standard of care,” Fudge said. “They deserve peace of mind when planning for their retirement. The Department of Labor owes it to the workers of America to fully implement current rules and regulations put in place to ensure that they receive unbiased and fair advice. What is your plan to protect these workers?”
Acosta replied: “Congresswoman, first let me say, you are correct. Like all industries, the investment industry has some bad actors and individuals need to be protected. As you’re aware, the fiduciary rule was struck down by an appeals court. It was held to exceed the statutory authority — ”