“We should not be holding this markup today. It is essentially an attempted end-run around the rule-making process.
“What this bill would do is amend the rules that determine when investment advice given by an advisor to an employee benefit plan investor gives rise to fiduciary status.
“This issue is indeed an important one. Plan participants and IRA owners are often not experienced investors. They rely on advice that is given to them by investment professionals. Ensuring that this advice is impartial and free from conflicts of interest is critical.
“The Administration first issued proposed regulations on this issue six years ago in 2010. They received many comments from consumer and industry groups and decided to redraft the proposal. That new proposal - issued last year - prompted more than 3,000 comment letters. The Administration has stated - and I emphasize this - that it has taken these comments and the numerous consultations on all sides of this issue into account when they prepared a final draft of the rule. That draft is now being considered by OMB. Nobody on this committee has seen that final draft.
“We should wait until the final rule is issued-and Congress and consumers and industry groups have had adequate time to review it-before considering any legislation in this area.
“This bill sets a harmful precedent, and I emphasize that. It is one that Republicans want as part of their effort to pass the REINS Act, a bill they pushed last summer that would effectively bring agency rule-making to a standstill by requiring an affirmative ‘yes’ vote from both chambers of Congress before a final rule may become effective. This bill includes a similar requirement for the upcoming rule. We should not be party to this very dangerous effort."
