Consumers groups who advocate for fiduciary protections for investors have concerns about whether Scalia will be able to put investors first after a lifetime of representing corporate clients and the securities industry.
Barbara Roper, director of investor protection at the Consumer Federation of America, said, “Everyone seems to agree that Mr. Scalia is a smart and talented attorney. But he’s spent his career as the go-to lawyer for the Chamber of Commerce and Wall Street, attacking regulations designed to protect workers and retirees.
“The question is whether he will now shift gears and work to protect the interests working Americans and retirees or use his new position to continue to look out for his corporate clients,” Roper said.
Dale Brown, president & CEO of FSI, which Scalia represented in their case against the DOL’s fiduciary rule, said he supports President Trump’s selection of Scalia to lead the DOL.
“Eugene Scalia is well qualified and, if confirmed, would be an outstanding secretary of labor," he said "Scalia will bring an investor-focused, measured approach, including recognizing the potential for unintended consequences of rulemaking."
Scalia will face a confirmation hearing before the Senate Health, Education, Labor and Pensions Committee sometime after lawmakers in the upper chamber return to Washington following the summer recess. The committee will need to vote on approving him before his nomination reaches the Senate floor for a full vote.
His appointment has triggered opposition from labor unions because of his work representing corporations and the U.S. Chamber of Commerce in labor fights. Many Democrats are also likely to oppose his nomination, though the Republican majority in the Senate means his confirmation is likely, barring a tremendous controversy surfacing ring the process.
The White House on Tuesday described Scalia as "a renowned labor, employment, and regulatory lawyer," and pointed to his extensive private and federal government experience.