While all of the focus has been on the DOL's current review of the fiduciary rule, which has yielded an encouraging possible change to the private right of action clause, Congress remains hard at work to kill the fiduciary rule.
The House is now advancing a new bill to kill the rule, led by Rep. Ann Wagner (R-Mo.).
The new rule would require brokers to make recommendations that "reflect reasonable diligence, care, skill and prudence", but it would allow them to take commissions, sell proprietary products, and engage in principal transactions.
Brokers would need to "avoid, disclose or otherwise reasonably manage any material conflict of interest with a retail customer" and would have to disclose any compensation they receive at the point of sale.
The new bill is set to be discussed by a house subcommittee alongside the DOL rule this Thursday.