NEW YORK (Reuters) – Forty House Democrats, led by Maxine Waters, a senior party member of the House Financial Services Commission, voiced their 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 last day of the proposal’s roughly two-week comment period, the group said a 60-day delay to the DOL fiduciary rule would deprive workers and families of unbiased financial advice.
The fiduciary rule, which goes into effect on April 10, requires retirement advisers to put clients’ interests before their own.
Some of the largest Wall Street brokerages have already leveled the fees charged on certain investment tools, in an effort to eliminate any unintended incentives for advisers to select one fund over another. Other brokerages have begun phasing out commission-paying retirement accounts.
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 allow time for such an economic and legal analysis.
“It is unacceptable that now, about a month before implementation of the final rule begins, the DOL is carelessly proposing to delay it,” the Democrats wrote in their letter, noting that the regulation was the product of six years of investigation and negotiation.
“Workers and retirement savers deserve better and have waited long enough,” the group wrote.
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