House Passes Bill Opposing Fiduciary Rule

The Retail Investor Protection Act is likely to be vetoed by the White House.

H.R. 1090, a bill sponsored by Rep. Ann Wagner (R-Missouri) that would yank the reins on the DOL’s fiduciary rule, passed the House Tuesday afternoon after extended commentary from a long list of representatives. “I refuse to stand by and let Pres. Obama advance another regulation that takes away Americans’ ability to save,” Rep. Wagner said on Twitter on the day of the vote.

Lawmakers voted along clear party lines, with just three Democrats—David Scott (D-Georgia), Kyrsten Sinema (D-Arizona) and Brad Ashford (D-Nebraska)—voting in favor and one Republican—Walter Jones (R-North Carolina)—voting against.

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The Obama Administration has already registered its support of the DOL initiative, and the White House on Monday released a statement in advance of the vote, plainly stating that if President Obama were presented with the bill, his senior advisers would recommend a veto. It’s also still unclear what the bill’s prospects are in a Senate viewed as somewhat more friendly to the president’s policies. 

H.R. 1090 prohibits the DOL from issuing a new conflict of interest rule applying under the Employee Retirement Income Security Act (ERISA) until the Securities and Exchange Commission (SEC) moves forward on its own rulemaking that would apply more generally to brokers and advisers. 

According to the Obama Administration, “[H.R. 1019] also impinges on the SEC’s ability to move forward with its own rulemaking by requiring the SEC to take the misguided step of providing definitive findings before promulgating a rule. Further, the bill ignores the fact that significant study has already been conducted by both agencies and that Labor has had extensive engagement with the public, industry, and numerous stakeholders in its rulemaking process.”

Industry response seems to be generally positive towards H.R. 1090, with two advocacy organizations—the Investment Company Institute (ICI) and the Insured Retirement Institute (IRI)—quickly releasing statements applauding the measure and expressing concern that the the fiduciary proposal of the Department of Labor (DOL) would limit investor access to advice.

Agreeing that “financial advisers should act in the best interests of their clients at all times,” Paul Schott Stevens, president and chief executive of the ICI, registered disapproval with the fiduciary proposal in a statement, saying if it were adopted in its current form, “it would do great harm.” The sensible goal of H.R. 1090 would encourage federal agencies to adopt “a harmonized fiduciary duty for all investors,” Stevens said, without jeopardizing investor access to personalized, cost-effect investment advice. “Simply put, H.R. 1090 reflects a strong purpose … to get the fiduciary rules right,” he said.

Cathy Weatherford, president and chief executive of the IRI, said the vote emphasizes deep concern with the fiduciary proposal. “Members of Congress in both chambers, on a bipartisan basis, have written letters to the DOL expressing concern that the proposal will restrict retirement savers’ access to retirement planning advice and limit their choice on retirement products, including lifetime income strategies that help Americans ensure their savings last throughout all their retirement years,” she said in a statement.

GuideSpark Launches Financial Wellness Product

The product delivers personalized, interactive content to employees.

Workforce communications provider GuideSpark launched its Financial Wellness Product.

The solution enables companies to provide tailored financial wellness education to their employees through a comprehensive financial assessment, personalized action plans, engaging informational videos, and direct integration to actionable, employer-provided programs and tools. With GuideSpark’s personalized mobile and video solution, the aim is to inspire employees to take action and gain control of their financial futures.

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The impact of employee financial stress, such as worrying about bills, making mortgage payments or saving enough for retirement, can be detrimental in the workplace, GuideSpark notes. A recent survey found finance is the No. 1 cause of stress among employees.

GuideSpark’s Financial Wellness product provides employees with a simple way to assess their own financial wellness and learn how they can improve, subsequently guiding them toward taking the appropriate actions.  Designed to meet the needs of workers whether they are based in a physical facility, on-the-road or remotely, GuideSpark’s mobile-first solution is available anytime, anywhere. It includes an extensive interactive video library covering important financial topics such as 401(k) programs, retirement planning, estate planning, budgeting, investing, and much more.

NEXT: Product featuresKey features of the solution include:
  • Financial Wellness Assessment: Through a short, yet detailed, self-service questionnaire covering all aspects of financial health, employees receive their personalized financial health score and a financial stress score, highlighting the specific areas impacting stress levels and identifying gaps in their financial understanding.
  • Personalized Content: Based on their employee assessment results, users are presented with engaging content recommendations, enabling employees to understand where to focus and what steps they can take to improve their financial health. Short videos introduce key concepts, and multiple engagement styles are used to provide depth and education exactly where needed.
  • Easy Integration for Action: GuideSpark’s Financial Wellness product is incorporated into the employer’s existing partner tools and resources that support financial wellness, such as 401(k) providers, financial coaching solutions, employee assistance programs (EAPs), legal services, and many more. As a result, employees benefit from a multi-faceted and personalized experience that drives to action and utilizes often dormant employer-provided resources.
  • Reporting and Analytics: Aggregated reporting and analytics provide employers with key insights that can be used to build and improve more targeted financial wellness programs. They are able to pinpoint stressors and financial hardships that may be unique to segments of their workforce.
  • Cloud-based Service: The financial wellness product is delivered through the GuideSpark SaaS Platform, which is offered as a cloud-based subscription to facilitate rapid deployment and ease-of-purchase. It easily scales across any organization, and provides 24/7 access from all devices such as smartphones, iPads and PCs, ensures employees can view content and videos when and where it is most convenient. Automatic, ongoing updates from GuideSpark ensure the most up-to-date education and communications minimizing on-going maintenance efforts and costs.

Additional information about GuideSpark’s Financial Wellness Product can be accessed at http://www.guidespark.com/solutions/financial-wellness/.

 

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