The House of Representatives approved three legislative amendments that would restrict or even prohibit the DOL from using funding to finalize, implement and enforce the recently announced DOL fiduciary rule..
The three amendments were introduced GOP lawmakers and approved on voice vote as part of the Labor, Health and Human Services, Education, and Related Agencies Appropriations Act.
All three amendments were approved by voice vote.
The first amendment would restrict any funds made available by the appropriates bill from being used “to finalize, implement or enforce” the DOL fiduciary rule or any substantially similar rule. The amendment was introduced by Rep. Rick Allen of Georgia.
The second amendment would prohibit the DOL from using funds to finalize, implement or enforce proposed amendments to class prohibited transaction exemptions (PTEs) which have been used by registered reps and agents who charge commissions to sell annuities and other products to retirement rollover customers. Rep. Ann Wagner of Missouri introduced the amendment.
Rep Ralph Norman of S.C. introduced the third amendment which was passed, which prohibits the DOL from using funding to crack down on “junk fees” in retirement plan advice, as outlined by the White House’s fact sheet on the DOL fiduciary rule.
“We are encouraged that some members of Congress are recognizing that the Biden Administration’s proposed fiduciary rule is unnecessary, redundant, and will harm lower and middle class retirement savers, Dan Zielinkski, a spokesman for the Insured Retirement Institute, said.
The odds of amendments that prohbit a federal agency from pursuing rulemaking surving the Senate when it takes up the bill are long, one policy expert told Financial Advisor magazine.