NEW YORK, March 17 Forty House Democrats, led by
the party's top member of the House of Representatives Financial
Services committee Maxine Waters, voiced opposition on Friday to
a U.S. Labor Department proposal to delay the start of a
controversial retirement regulation.
In a letter sent on the final day of the proposal's roughly
two-week-long comment period, the group said that a 60-day delay
of the DOL's fiduciary rule would deprive workers and families
from unbiased financial advice.
Set to take effect on April 10, the fiduciary rule requires
retirement advisers to put the interests of clients ahead of
Some of Wall Street's largest brokerages have already
leveled the commissions charged on certain investment tools, in
an effort to eliminate any unintended incentive for advisers to
select one fund over another. Other brokerages have begun to
phase out commissions-paying retirement accounts altogether.
Despite that preparation, which began in earnest last year,
President Donald Trump asked the Labor Department in February to
re-examine the cost of implementing the rule. The Labor
Department proposed the delay to give themselves time to conduct
such an economic and legal analysis.
"It is unacceptable that now--roughly a month before
implementation of the final rule is scheduled to begin--the DOL
is carelessly proposing to delay it," the Democrats wrote in
their letter, noting the regulation was the product of six years
of research and negotiation.
"Workers and retirement savers deserve better and have
waited long enough," the group wrote.
(Reporting By Elizabeth Dilts; Editing by Chizu Nomiyama)