Rep. Joe Wilson, R-SC, has introduced legislation in the House of Representatives that would delay the implementation date of the Labor Department’s fiduciary rule by two years.
The Protecting American Families’ Retirement Advice Act is only three paragraphs long.
According to language in the bill, the rule “shall not take effect until that date that is two years after the date of enactment of this Act.”
The rule officially became effective in June of 2016. The first implementation date is scheduled for April 10, 2017.
If passed, Wilson’s bill will extend that date to two years after the new bill is signed into law. The bill will have to survive a filibuster, or the threat of one, from Democratic senators before it reaches the next President’s desk.
“This legislation will delay the implementation of this job-destroying rule, giving Congress and President-elect Donald Trump adequate time to re-evaluate this harmful regulation,” said Wilson in a statement.
“The Department of Labor’s fiduciary rule is one of the most costly, burdensome regulations to come from the Obama administration. Rather than making retirement advice and financial stability more accessible for American families, they have disrupted the client-fiduciary relationship, increased costs, and limited access,” he added.
Industry advocacy groups lined up to support the measure.
“A delay is much needed and will provide more time to policymakers to reevaluate it and protect consumers from its negative consequences,” said Cathy Weatherford, CEO of the Insured Retirement Institute, in a statement.
“The current rule is overly complex, involves too much red tape, and is already negatively impacting consumer choice and service,” said Tim Pawlenty, CEO of the Financial Services Roundtable. “Rep. Wilson's bill will allow time for a less bureaucratic 'best interest' standard to be developed.”
“As our members have worked diligently to prepare for implementation, at great cost and with consequential impacts on retirement savers, a delay in applicability would be prudent to allow the new Congress and Administration to review a better course to protect investors,” said Kenneth Bentsen, CEO of the Securities Industry Financial Markets Association.
“A delay provides time for the new Administration to conduct a thoughtful and appropriate review and to work with stakeholders toward public policies that help Americans achieve their financial and retirement security,” said Paul Daugherty, president of the National Association of Insurance and Financial Advisors.