This resolution would nullify and express Congress’ disapproval of a Dept. of Labor (DOL) rule related to the definition of the term “fiduciary” and its relationship to conflicts of interest in offering retirement investment advice. Fiduciary rules look to prevent conflicts of interest by requiring an advisor to act in the best interest of their client rather than their own when offering advice.
The rule had been published on April 8, 2016 and broadens conflict of interest rules to require investment advice about Individual Retirement Accounts (IRAs) and 401(k) accounts comply with regulations aimed at preventing conflicts of interest. Under current law investments of those types aren’t always covered by fiduciary rules. It would also restrict the ability of advisors to assist small businesses that seek advice in setting up retirement plans.
As a joint resolution, this legislation would advance to the Senate and potentially the president’s desk if it passed by both chambers of Congress. If signed by the president, it would have the force of law under the authority of the Congressional Review Act.