House Approves Bill to Delay DOL Fiduciary Rule
October 31, 2013 (PLANSPONSOR.com) – The U.S. House of Representatives
has approved a bill that would delay issuance of a new definition of
fiduciary by the Department of Labor (DOL).
According to text of the Retail Investor Protection Act, gthe Secretary
of Labor shall not prescribe any regulation under the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1001 et seq.) defining the
circumstances under which an individual is considered a fiduciary until
the date that is 60 days after the Securities and Exchange Commission
issues a final rule relating to standards of conduct for brokers and
dealers pursuant to the second subsection (k) of Section 15 of the
Securities Exchange Act of 1934."
The bill goes on to say the Securities and Exchange Commission (SEC)
cannot issue its final rule until it determines whether retail investors
are being harmed by different standards for broker/dealers and advisers
and whether adopting a uniform fiduciary standard of care for
broker/dealers and advisers would adversely impact retail investorsf
access to personalized investment advice.
During a recent speaking engagement, Assistant Secretary of Labor
Phyllis Borzi of the DOLfs Employee Benefits Security Administration
(EBSA) said the agency is gvery close to finishingh a new definition of
fiduciary (see gShutdown Put Delay on Some Regulationsh). She assured
the audience the EBSA is working closely with the SEC on the regulations.
Text of House bill H.R. 2374 is here.
Rebecca Moore
editors@plansponsor.com
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