Currently, the financial advisers who help retirees decide where to invest are able to legally steer people toward decisions that would enrich their own profits but not be the most financially prudent decision for their clients. The practice costs Americans an estimated $17 billion a year.
The new rule will require advisers to adhere to a fiduciary standard, always putting clients’ interests ahead of their own when making recommendations in exchange for compensation. They’ll also have to charge fees and other payment in ways that don’t create a conflict of interest.
After the Department of Labor released the final version of the rule in April, Republican lawmakers in the House and Senate passed a resolution effectively blocking the rule, which President Obama vetoed.
So on Wednesday night shortly after 10 p.m., House Speaker Paul Ryan (R) and his Republican colleagues returned to the House floor to hold a vote on a resolution that would override Obama’s veto, stepping over the Democratic lawmakers on the floor who shouted “No bill no break” over the voting. The vote failed, given that Republicans fell more than 40 votes short of the two-thirds majority necessary.
Republicans later re-entered the chamber around 2:30 a.m. to hold a vote on Zika prevention funding before Ryan gaveled the end of the legislation session for the July 4th break.
Author: Bryce Covert