The U.S. Senate approved legislation on Tuesday to stop the U.S. Department of Labor’s fiduciary rule.
Senators voted 56-to-41 to approve the measure, which would formally block the fiduciary rule under the Congressional Review Act.
Rep. Phil Roe (R-Tenn.), the bill’s author and primary sponsor, lauded the Senate’s action in a statement on Tuesday evening.
“Today’s Senate vote moved us one step closer to helping every American—regardless of income—retire with the financial security and peace of mind they deserve.,” Roe said. “We need to make it easier for families to save for their retirement years, and as we’ve said all along, that includes ensuring financial advisors act in their clients’ best interests. We can achieve this bipartisan goal without restricting access to affordable retirement advice for low- and middle-income families and creating new hurdles for small businesses. That’s exactly why Congress passed this resolution.”
Three Democratic Senators joined Republicans in largely partisan-line voting to block the rule: Jon Tester of Montana, Heidi Heitkamp of North Dakota and Joe Donnelly of Indiana.
The bill passed the House by a 234-to-183 vote last month.
The vote is likely to be symbolic, as White House spokespersons have said that President Barack Obama will veto the bill. Neither chamber has voted with support sufficient enough to override the veto.
After the vote, the legislation returns to the floor of the House of Representatives for reconciliation, before it passes to the president’s desk for signature or veto.
Last month, the DOL published final language of its rule, greatly expanding the definition of fiduciary advice to encompass virtually all recommendations made to the owners and sponsors of retirement plans and IRAs.
The Financial Planning Coalition, a trade organization comprising the CFP Board, the Financial Planning Association, and the National Association of Personal Financial Advisors, panned the Senate’s vote in a statement on Tuesday: