Labor Department Secretary Tom Perez said Thursday the agency is well prepared to fight a lawsuit against the fiduciary rule by opponents if one is filed.
“They don’t have a legal issue to stand on,” said the Labor Secretary.
Instead of working to overturn the rule in Congress and potentially the courts, Perez said, industry opponents should be declaring victory since many of the changes they advocated made it into the final "best interest standard” rule.
The thing DOL heard most frequently in discussions after the rule was proposed is “the Department of Labor listens,” said Perez.
On a day when the House is expected to pass a resolution to void the fiduciary rule on a party-line or near party line vote, Perez said President Obama has promised to veto it if it comes to his desk.
While House and Senate Republicans have voiced loud support for the resolution, its chance of becoming law are near zero because it would take a two-thirds vote of both chambers to overturn the regulation.
Only one time in over 20 years has Congress succeeded in voiding a federal rule.
During Perez’s press conference, the leading Democrat on the House Financial Services Committee Maxine Waters called the fiduciary rule the finest work on behalf of consumers that House Democrats have been involved in.
She praised Perez as President Obama’s best cabinet secretary.
In a goof, the Labor secretary referred to her as “chairwoman.”
Afterwards, she laughed.
Perez: DOL Rule Opponents Don’t Have A Legal Leg To Stand On
April 28, 2016
« Previous Article
| Next Article »
Login in order to post a comment
Comments
-
Just goes to show you just how out of touch those socialists/communists in Washington really are! Go ahead and take your victory lap while you have the chance. After this coming January when a Republican is in the White House and the Republicans in Congress have found their courage once more this monstrosity of a regulation won't have to be contested in court. Obama won't be around. Perez won't be around. It will be repealed just like Obamacare. Then we'll see whose laughing then.
-
As I have personally worked, in conjunction with NAIFA, to fight this regulation I know the amount of arrogance that the Federal government has when it comes to its powers to regulate our industry. They (The Feds) do not understand the value that advisers bring to the overwhelming majority of our clients, the commitment that we have to the same to "do the right and fair thing" in recommending products and services, or even that most folks have neither the time, understanding or inclination to manage their own investments. But as with just about all things they see the issue in terms of nails and hammers: the problem is actually a finishing nail and they propose sledgehammers to drive them. I hope that this is eventually thrown out but I fear that now that the toe is in the door it is only a matter of time before they kick it open and ruin the financial services industry in their pursuit of "protecting" consumers from themselves.
-
When Maxine Waters praises anything, you should hang your head in shame if you are in agreement. The fee-only crowd have embarrassed themselves with their desire to get the government more involved with our business. Welcoming in the Obamacare of financial services is a tragic mistake that should make any investor question the wisdom of any advisor who advocated in favor of it.