Such a resolution would need a two-thirds majority to overcome a certain veto by president Obama, who has strongly supported the DOL rule.
“Many people on both sides of the aisle have said they’re interested in looking at this option,” Iacovella said in an interview.
While the DOL made some welcome changes in response to industry concerns, clients in different types of accounts will still have to be treated differently, Iacovella added.
“That makes this [rule] a compliance nightmare,” he said.
Not all B-Ds were negative on the DOL’s final rule, however.
The department eliminated a proposed prohibited-product list for IRAs (including non-traded REITs and options), and streamlined disclosure requirements and the best-interests contract that allows commissioned products in retirement accounts. The DOL also extended the implementation period to 12 months from eight months.
“It does appear that all investments can be [used], as long as provisions of the [best-interests contract] are met, and it looks like they have made meaningful changes to fee and compensation disclosures,” said Doug Baxley, assistant vice president of compliance at Securities Service Network.
In a statement, LPL Financial said it was “pleased by what appears to be positive changes implemented in the rule,” noting the increased time for implementation, easier terms on using the contract with existing clients, and freedom to recommend any product.
Cindy Schaus, spokeswoman for Cambridge Investment Research, said the company was appreciative of the apparent compromise on the implementation schedule.
The modifications “indicate the DOL has considered some of the industry’s concerns,” agreed Adam Antoniades, president of Cetera Financial Group, in a statement.
“However, we will be studying the newly released details of the final rule” to determine the firm’s response, he said.