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Congressman Introduces Bill to Delay DOL Fiduciary Rule

On Friday, Rep. Joe Wilson (R-S.C.) introduced the Protecting American Families’ Retirement Advice Act, a bill that intends to delay the implementation date of the Department of Labor’s fiduciary rule.

The bill would delay the rule from taking effect until two years after the legislation is enacted, rather than the currently scheduled implementation date of April 10, 2017.

Rep. Wilson, a member of the House Committee on Education and the Workforce said that the delay of the “job-destroying rule” would give Congress and President-elect Donald Trump “adequate time to re-evaluate this harmful regulation.”

“The Department of Labor’s fiduciary rule is one of the most costly, burdensome regulations to come from the Obama Administration,” Wilson added. “Rather than making retirement advice and financial stability more accessible for American families, they have disrupted the client-fiduciary relationship, increased costs, and limited access.”

The fiduciary rule, which was six years in the making, attempts to reduce conflicts of interest in retirement investment advice and redefines who is considered an investment advice fiduciary under the Employee Retirement Income Security Act of 1974. According to the DOL, all who provide retirement investment advice to plans, plan fiduciaries and IRAs are required to abide by a “fiduciary” standard.

Wilson’s legislation was endorsed by a number of industry trade groups, including the American Council of Life Insurers, the Financial Services Roundtable, the Insured Retirement Institute, the National Association of Insurance and Financial Advisors, and the Securities Industry and Financial Markets Association.

While Trump has remained mum on repealing the fiduciary rule, one of his advisors, Skybridge Capital managing partner Anthony Scaramucci said the president-elect will repeal the rule if elected.

Trump’s inauguration is scheduled for January 20th, less than 90 days before the fiduciary rule goes into effect.

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