“We strongly believe the DOL rule will significantly harm low and middle-income investors seeking financial advice regarding their retirement and will cause unintended consequences,” the two lawmakers wrote.
In the House, Representative Ann Wagner, a Missouri Republican, is pushing legislation that would require the SEC to propose rules first.
‘Appeasing’ Obama
Along with congressional pressure, White is also dealing with differing opinions among her fellow commissioners.
The SEC’s two Republicans, Daniel Gallagher and Michael Piwowar, openly oppose a new rule.
“The fiduciary duty debate lies squarely in the realm of issues contrived by and urged upon the SEC by special interests,” Gallagher said. “There is no time, and no proven need, to pursue a fiduciary-duty rulemaking, unless of course we are focused more on appeasing the White House than on being an independent agency.”
On the Democratic side, Commissioner Luis Aguilar supports writing new rules as soon as possible. He said in an interview that he hasn’t seen “any tangible movement” on the rules and isn’t convinced that the SEC will advance its own plan.
For now, the SEC is conducting special exams of brokers who advise senior citizens and retirement investors. The effort targets excessive fees and inappropriate recommendations and covers how brokers advise investors to roll over assets from 401(k) plans into IRAs, Kevin Goodman, an SEC official, said at a conference last month.
Some consumer advocates who have talked to White say they see signs that the SEC may move ahead with its own rule.
“Even with a very full agenda of issues, she’s been giving attention to it, and that’s a good thing,” said Barbara Roper, director of investor protection at the Washington-based Consumer Federation of America, who met with White in early February.