Lawmakers “have recognized that this latest proposal from the department would have even broader application than the previous rule that a court rejected,” Richman said.
In contrast, consumer and pro-fiduciary groups, including the CFP Board of Standards and the Consumer Federation of America, say the rule is needed to ensure broker aren’t selling products that pay them higher commissions, but aren’t in the consumer’s best interest.
The DOL’s efforts to enact a similar rule in 2016 was vacated by an appeals court in 2020 on the grounds that the agency overstepped its authority and Congress’s intent in ERISA.
Republicans in the Senate also introduced legislation using a different tact to target the embattled acting DOL secretary.
Senator Bill Cassidy, a Republican representing Louisiana and the ranking member of the Senate Health, Education, Labor and Pensions Committee, introduced legislation that would require Su to step down as acting secretary.
The Advice and Consent Act would restrict an official from serving in an acting capacity for more than 210 days after their initial nomination. Su has currently been acting secretary for 265 days without Senate confirmation.