Today, the U.S. Senate voted to pass S.J. Resolution 33, whichwould rescind the Department of Labor’s recently finalizedfiduciary rule.

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The resolution passed by a 56 to 41 margin, with three Democrats-- Sens. Donnelly, IN, Heitkamp, ND, and Tester, MT -- joiningRepublicans in support of blocking the DOL’s implementation of therule, which will begin to phase in April of 2017.

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The U.S. House of Representatives passed asimilar resolution along party lines in April, just weeks after therule was finalized.

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Under the Congressional Review Act, Congress has 60 days toreview finalized regulations. The resolution of disapproval ofDOL’s rule will now go to President Obama, who has guaranteed aveto of the resolution. A two-thirds majority in both chambers willbe necessary to override the veto.

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Read: DOL fiduciary rule might affect advisorrecruitment compensation

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The Securities Industry and Financial Markets Association, whichrepresents the interests of the broker-dealers whose commissionrevenues stand to be affected by the rule, urged lawmakers tosupport the rule in a letter.

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As did the Chamber of Commerce, which sent a letter undersignedby a coalition of about 450 small businesses and financial serviceproviders.

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Read: SEC sets release date for its own fiduciaryrule

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The Chamber’s letter focused on the so-called seller’scarve-out, which was significantly amended in the final rule.

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Under that provision, advisors and providers to 401(k) planswith less than $50 million in assets will be required to serve in afiduciary capacity. Advisors to plans above that threshold will notbe subject to the new rule.

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In the proposed form of the rule, the seller’s carve-out appliedto plans with less than $100 million in assets or fewer than 100participants. By removing the 100 participant threshold in thefinal rule, DOL vastly expanded the number of plans and advisorsthat will be impacted by the rule.

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Now, a hypothetical plan with 1,000 participants would beaffected by the seller’s carve-out, assuming the average accountbalance is under $50,000.

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The DOL has reasoned that larger plans will have the internalcapabilities to prudently oversee plan design and implementation,and therefore will not need third-party advisors to act asfiduciaries.

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The Chamber has taken exception to that reasoning throughout therulemaking process.

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In its most recent letter to lawmakers, the Chamber said the“additional burdens” to advisors of small plans means thoseadvisors “will incur increased litigation risk and additionalcosts, which will be passed on the plan.”

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Ultimately, “some advisors to small plans may decide to nolonger offer their services to small plans if the expense and riskof changing business models and fee structures is not justified,”the letter added.

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Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.