House Dems Give Early Thanks to DoL

More than 30 House Democrats sent a letter to Secretary of Labor Hilda Solis, thanking her for withdrawing the proposed rule for the redefinition of “fiduciary.”  

Signed by 32 Congressmen, as well as Financial Services Committee Vice Chairman Barney Frank, the letter states: “If the previous rule had been finalized as proposed, millions of Americans would have been left without the ability to receive adequate investment education and assistance in planning for retirement.”

The letter urges the Department of Labor to work in coordination with the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) so that a “re-proposed rule achieves the Dodd-Frank Act’s objective of a uniform standard of care for investors.”  

The Congressmen recommend the Secretary takes three steps: 1) conduct a thorough review of the need for a new regulation; 2) perform a complete cost/benefit analysis, and 3) take into account the comments submitted. 

The letter also asks that the re-proposed rule meet the following criteria: 

  • Is narrowly drafted to address well-defined and documented concerns 
  • Preserves the access of IRA owners and plan participants to investment services delivered by qualified financial professionals using whatever business model best fits the investor’s objectives 
  • Ensures that companies can receive the investment information they need to establish plans and offer sound investment options to their employees 

The letter-writing effort was led by Rep. Jim Himes of Connecticut.