Today, the U.S. House of Representatives approved H.J. Res. 88, a resolution to block the Department of Labor (DOL) fiduciary regulation from taking effect. Earlier this week, the Big “I” and a coalition of business trade associations sent a letter to House leadership supporting the resolution.

The resolution—sponsored by Reps. Phil Roe (R-Tennessee), Charles Boustany (R-Louisiana) and Ann Wagner (R-Missouri)—would block the DOL from implementing the rule under the Congressional Review Act (CRA). The CRA allows the U.S. Senate and House to vote on a joint resolution of disapproval to stop a federal regulation. The resolution only needs to pass with a simple majority in both chambers. However, any joint resolution would be subject to a Presidential veto, and it may be hard to reach the two-thirds majority necessary to overcome a veto.

Sens. Johnny Isakson (R-Georgia) and Lamar Alexander (R-Tennessee) are the lead sponsors on the Senate Joint Resolution, S.J. Res 33, introduced earlier this month. Since its introduction, the resolution has garnered nearly 40 co-sponsors, but a vote has yet to be scheduled. 

The Big “I” also supports other legislative measures that seek to address concerns about the rule. The fiduciary regulation tightens conflict of interest rules under the Employee Retirement Income Security Act and requires any person who provides guidance to clients about certain retirement investments to adhere to a fiduciary standard of care.

The rule primarily impacts IRAs, though it will also affect many 401(k) retirement plans and some HSAs. Moving forward, those who provide investment advice must either avoid compensation arrangements that create conflicts of interest or comply with the terms of an exemption the DOL issues. While arguably well intentioned, the rule will make retirement advice more costly and complicated, and will limit consumer choice.

Jennifer Webb is Big “I” federal government affairs counsel.