Senate Passes Roe Bill to Stop Fiduciary Rule, Obama Veto Likely
On Tuesday, the U.S. Senate voted on H.J. Res. 88, a joint resolution introduced by Rep. Phil Roe (R-TN) seeking to block the Department of Labor’s fiduciary rule. The legislation passed in a 56-41 vote mostly along party lines.
Although Republicans have been leading the fight against the controversial rule that redefines what is considered a “fiduciary” as it pertains to providing investment advice, three Senate Democrats gave their support. Joe Donnelly (D-IN), Heidi Heitkamp (D-ND), and Jon Tester (D-MT) all voted in favor of the legislation.
As reported by The DI Wire last month, the House passed the resolution in a 234-183 vote along party lines.
President Obama has made it clear that if the resolution makes it to his desk, he will veto. Neither the House nor the Senate reached the two-thirds majority needed to override a veto by the President.
According to the bill summary, under current law, a person who provides investment advice has a fiduciary obligation that requires the person to provide advice in the sole interest of plan participants and beneficiaries. The new rule changes the definition of “investment advice” to treat people who provide investment advice to pension and retirement plans for a fee or other compensation as fiduciaries in a wider array of advice relationships.
