White House threatens to veto bill blocking financial adviser rule

The White House is threatening to veto a GOP effort to roll back new rules for financial advisers.

The Labor Department’s so-called fiduciary rule requires retirement advisers to act in the best interest of their clients.

{mosads}Republicans, who oppose the rule, will vote later this week on a resolution of disapproval to strike them down. But the White House on Wednesday vowed to veto the GOP bill.

The fiduciary rule is “critical to protecting Americans’ hard-earned savings and preserving their retirement security,” the White House said.

“The outdated regulations in place before this rulemaking did not ensure that financial advisers act in their clients’ best interest when giving retirement investment advice,” the White House continued.

“Instead, some firms have incentivized advisers to steer clients into products that have higher fees and lower returns — costing American families an estimated $17 billion a year.”

The Labor Department finalized the fiduciary rule on April 8, starting the clock on a 60-day period lawmakers have to overturn the regulation under the Congressional Review Act.

Senate and House Republicans both introduced disapproval measures last week, with the lower chamber expected to vote Friday. 

The GOP only needs a simple majority to pass the disapproval measures, but they may not have enough support to overcome the president’s veto.