In an article published today in Investment News, Thorn Run's Jason Rosenstock comments on the political landscape surrounding the Department of Labor’s rule to raise investment advice standards for retirement accounts by cutting funding. “It's too early to tell what the ultimate fate of the riders will be, but they will stay in play throughout the appropriations process as the DOL continues to work on the rule,” Rosenstock explains in the article. He continues saying, “the riders are clearly a mark that Congress is going to keep an eye on what the department is doing on this,” adding that “it's going to keep pressure on the department to be responsive to some concerns that Congress and the industry have identified.”
Investment News: Momentum to defund DOL fiduciary rule seems unstoppable
Momentum in Congress to thwart a Labor Department proposal to raise investment advice standards for retirement accounts by cutting funding seems unstoppable. But proponents are looking to the history of the fight around the fiduciary duty and the long road ahead for optimism.A couple weeks of action in both legislative chambers was capped off Thursday with the Senate Appropriations Committee approving a spending bill that includes a provision to prevent funding for finalization or implementation of a fiduciary rule for brokers working with 401(k) and individual retirement accounts. The rider is part of legislation that provides $153.2 billion in fiscal 2016 for several agencies, including the DOL, the Department of Health and Human Services, and the Education Department.
Before the vote, the Senate Appropriations Committee defeated an amendment offered by Sen. Richard Durbin, D-Ill., to remove the DOL fiduciary rider…
But unlike last year, when a similar rider to stop the DOL rule was not included in an omnibus spending bill, Republicans now control both the House and Senate. It's too early to tell what the ultimate fate of the riders will be, said Jason Rosenstock, a partner at Thorn Run Partners, but they will stay in play throughout the appropriations process as the DOL continues to work on the rule.
“The riders are clearly a mark that Congress is going to keep an eye on what the department is doing on this,” Mr. Rosenstock said. “It's going to keep pressure on the department to be responsive to some concerns that Congress and the industry have identified.”