Republicans look to stymie ‘fiduciary’ regulatory effort

Republican lawmakers are pushing back against President Obama’s latest effort to impose stricter rules on retirement investment advisers.

The long-stalled regulatory effort got a fresh boost in February, when Obama publicly threw his support behind the initiative, which is hotly contested by the financial industry.

{mosads}Now, Republicans are trying to throw a wrench in the effort, accusing regulators of failing to properly work together or urging the government to go as slowly as possible in drafting the rules.

Top GOP lawmakers sent a pair of letters to the administration this week, criticizing the latest effort to establish what is known as a “fiduciary duty” on more investment advisers, overhauling the way they are compensated.

On Thursday, top lawmakers on the House Education and Workforce Committee accused the Labor Department of circumventing financial regulators in their efforts to write the rule. GOP lawmakers have long insisted that the Securities and Exchange Commission must play a critical role in drafting any new rules.

Rep. John Kline (R-Minn.), chairman of the committee, and a subcommittee chief, Rep. Phil Roe (R-Tenn.), argued the SEC was being overlooked. The SEC’s work on that front has been slow-going

“it is clear coordination … is vital to ensure a functioning regulatory framework; it is unfortunately far less clear that such coordination is occurring,” the lawmakers wrote to Labor Secretary Thomas Perez.

One day earlier, another set of Republicans also condemned the Labor Department for operating independently of the SEC, warning it could lead to “inconsistent and overlapping regulatory requirements.”

“We strongly believe the DOL rule will significantly harm low and middle income investors seeking financial advise regarding their retirement and will cause unintended consequences to many American’s IRA accounts by limiting access of investment advice,” they wrote to Shaun Donovan, head of the Office of Management and Budget.

That letter was signed by Sen. John Boozman (R-Ark.) and Rep. Ander Crenshaw (R-Fla.), the appropriators with jurisdiction over the relevant agencies.

Those written critiques come as lawmakers are also eyeing a legislative roadblock. Rep. Ann Wagner (R-Mo.) has introduced legislation that would delay the rules.