Dems Call for Saving DOL Rule in Dodd-Frank Repeal
As the House of Representatives moves to vote on the Dodd-Frank overhaul bill, Democrats are trying to eliminate the provision that would kill the Department of Labor’s fiduciary rule, Roll Call writes.
This week, the full House may vote on the Financial Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs (CHOICE) Act, the bill sponsored by Rep. Jeb Hensarling, R-Texas and designed to overhaul Dodd-Frank.
Among the many provisions of the CHOICE Act, which passed the House Financial Services Committee last month, is the repeal of the DOL’s fiduciary rule. Under the bill, the SEC would be required to roll out its own version of the fiduciary rule, which would cover all advisors, before the DOL can act on its version, which would only apply to retirement account advisors.
But Rep. Stephen Lynch, D-Mass., has proposed an amendment that would strike the DOL rule repeal from the CHOICE Act. That amendment, however, was struck down in the committee vote, with all the Republicans and one Democrat voting against it, according to Roll Call.
In all, 16 amendments were filed by late Monday, and some Republicans may support a few of them, according to the publication. But the CHOICE Act isn’t likely to get beyond the House, Brian Kleinhanzl, managing director of large cap bank research at Keefe, Bruyette & Woods, tells Roll Call. The Senate Republicans hold too narrow of a majority to pass the bill without help from Senate Democrats, according to the publication.
Among other current amendments to the CHOICE Act is one that calls for a new Glass-Steagall-type regulation on banks, a provision that would give marijuana-related companies more access to banks, and one that would let some closed-end funds undergo the same registration and offering process allowed to publicly traded companies, Roll Call writes.
Earlier this week, President Donald Trump’s White House endorsed several CHOICE Act provisions, but killing the fiduciary rule is not among them.
In particular, the White House has endorsed the president’s ability to remove the head of the Consumer Financial Protection Bureau and put the agency under congressional appropriation proceedings, ease regulations on community financial institutions and subject financial regulators to more stringent cost-benefit analysis, according to the statement released by the White House.