Legislation that would delay implementation of the Department of Labor's new fiduciary rule for two years was introduced Friday by Rep. Joe Wilson, R-S.C.
The new effective date would be two years from passage of the bill.
Mr. Wilson, the second-highest ranking Republican on the House Education and the Workforce Committee, said in a statement that the rule “is one of the most costly, burdensome regulations to come from the Obama administration” and that is has “disrupted the client-fiduciary relationship, increased costs and limited access.”
Financial services groups welcomed the legislation. Financial Services Roundtable CEO Tim Pawlenty, whose group is one of several to challenge the rule in court, said in a statement that the bill if enacted “will allow time for a less-bureaucratic 'best interest' standard to be developed.”
Kenneth E. Bentsen Jr., president and CEO of the Securities Industry and Financial Markets Association, said that while its members have worked to prepare for the rule's implementation, “a delay in applicability would be prudent to allow the new Congress and administration to review a better course to protect investors.”
Calls to DOL were not returned at press time.
The legislation is the first of what is expected to be several legislative attempts to delay or overturn the rule before it goes into effect April 10.