House Financial Services Committee Republicans prepared to beat back efforts by Democrats Wednesday morning to save the fiduciary rule.
The Republicans argued in force to keep a provision in the Financial CHOICE Act—legislation aimed at undoing the Dodd-Frank financial reform act—that would kill the rule.
Democrats tried to delete it, but Republicans are expected to force a committee vote to kill their amendment to the CHOICE Act in the next two days.
In one of many volatile committee exchanges, Rep. Tom MacArthur, R-N.J., claimed the fiduciary rules makes financial advisor guarantors of financial results.
He was quickly rebutted by Rep. John Delaney, D-Md., who argued the best-interest standard “absolutely” does not guarantee performance.
MacArthur added he doesn’t think the rule is needed because other regulations make it crystal clear advisors cannot line their pockets.
Rep. Bill Huizenga, R-Mich., chairman of the House Financial Services Committee Capital Markets Subcommittee, predicted the fiduciary rule will force many consumers into using robo-advisors at best and no advice at worst.
“The rule is going to harm low- and middle-income savers,” he said.
Huizenga, whose subcommittee oversees the Securities and Exchange Commission, said the SEC is the right place for a standard of care for pension savers because the DOL doesn’t have the skill set to protect investors.
“Because the Labor Department doesn’t understand the capital markets, the rule is flawed,” said Huizenga.