A key House Republican is attacking the Department of Labor for allegedly failing to work closely with the Securities and Exchange Commission in developing fiduciary standards for advisors to pension funds.
Rep. John Kline of Minnesota, the chairman of the House’s Education and Workforce Committee, said the Labor Department did not consult with SEC Commissioner Daniel Gallagher and his four colleagues on the rule. (Gallagher, like Kline, is a Republican.)
Kline said he is worried inconsistencies between the DOL and SEC on fiduciary standards could harm retirement savers.
He urged the Labor Department to not formally issue a standard until it has proved to Congress the rule was written closely with the securities regulator.
The Department of Labor came out with a strict proposal earlier this week mandating that advisors to 401(k)s put the financial interests of their retail customers ahead of their own.
While SEC Chair Mary Jo White has said for months that a fiduciary rule is important to her, she has not released a time table, and other commissioners have said a proposal is unlikely this year.
Kline’s comments came from a letter sent to Labor Department Secretary Thomas Perez.