Bipartisan Letter Cautions against DOL's Fiduciary Rule Proposal

Members from both parties of the U.S. House of Representatives called for a newly revised proposal of the DOL's fiduciary rule, and asserted that the current proposed rule would "greatly expand the regulatory definition of a 'fiduciary' under ERISA. In a letter to the Secretary of Labor, a bipartisan group of representatives asserted that the current proposal is "significantly different than the 2010 version," and that "there is a strong possibility that a final rule may widely differ in its substance from the initial proposal or contain provisions that were not part of the proposed regulation. The letter also asserted that the current proposal is "significantly different than the 2010 version," and that "there is a strong possibility that a final rule may widely differ in its substance from the initial proposal or contain provisions that were not part of the proposed regulation."

The representatives also expressed their concern that the current proposal would "bi-furcate the industry into those who can afford an advisor and those who cannot," which they argued could result in a "disparate impact on access, choice, and costs for millions of low- and middle-income Americans saving for their retirement."