FEATURED:

White House blasts GOP effort to slow investor rule in omnibus

White House blasts GOP effort to slow investor rule in omnibus
© Getty Images

The White House said Tuesday it would “aggressively oppose” GOP efforts to water down upcoming rules on retirement investments as part of a government funding package.

White House press secretary Josh Earnest told reporters that the administration would oppose any provision tucked into must-pass government funding legislation that would weaken new “fiduciary duty” rules pushed by the president.

ADVERTISEMENT
“We are going to aggressively oppose any effort by Republicans to water down that rule,” he said.

Those rules, currently being written by the Labor Department, would require retirement investment advisers to act explicitly for the benefit of their clients. The proposal has been fiercely contested by the financial industry, which argues it would limit the investment advice available to lower-income Americans.

The GOP-led Congress included provisions in earlier appropriations bills that would have barred funds from being used to implement the rule for one year, but neither were signed into law.

Now, opponents of the rule are hoping to include a provision in an omnibus funding bill that would delay the rule, at least for a few months.

The Labor Department is in the process of finalizing the rule, after years of fits and starts on the initiative, and could unveil a final regulation early in 2016.

Jordan Fabian contributed to this report.