Republicans move to block Obama’s financial adviser rules

Republicans on Wednesday moved to block the Obama administration’s new rules for financial advisers.

Members of a House Appropriations subcommittee included a provision in the Department of Labor funding bill that mandates that none of the money can be used to craft or implement the pending regulations, known as fiduciary standards.

The subcommittee approved the measure on a party-line voice vote. A Democratic-backed amendment to strip the provision failed.

{mosads}The administration is pushing for new regulations requiring financial advisers to disclose how they’re paid. They say the regulations are needed to protect investors from financial advisers who pocket commissions from Wall Street after selling faulty financial advice.

The business community, Republicans and moderate Democrats argue the new regulations would just create compliance headaches and market confusion for investors. They say that the rules would raise the costs of financial advice for the people who need it most: people of lower and moderate incomes.

Labor Secretary Thomas Perez defended the proposal during testimony on Wednesday a House subcommittee.

“Too often advice is generated by the fees it creates, instead of what’s best for the investor,” Perez said.

It’s unclear whether the opposition in Congress will be able to slow down DOL’s efforts.