Overnight Regulation: House votes to block financial adviser rule

Welcome to Overnight Regulation, your daily rundown of news from the federal agencies, Capitol Hill and beyond. It's Thursday evening here in Washington and the Capitol was full of cute kiddos today as lawmakers, staff and reporters took part in Take Our Daughters and Sons to Work Day.

Here's the latest.

 

THE BIG STORY

The House voted Thursday to strike down a controversial rule for financial advisers.

Lawmakers voted 234-183, along party lines, to overturn the Labor Department's fiduciary rule -- which requires financial advisers to show they are acting in the best interest of their clients.

WATCH TIM'S CSPAN HIT HERE: http://cs.pn/24nes5v

The rule has set the stage for a bitter partisan dispute over retirement savings. 

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The GOP is using a legislative tool provided under the Congressional Review Act to disapprove of the rule. But President Obama has vowed to veto their legislation.

Republicans argue the rule will raise costs so that low-income people will no longer be able to afford investment advice.

Rep. Phil Roe (R-Tenn.), who is sponsoring the legislation to repeal the fiduciary rule, said his bill will "protect access to affordable retirement advice."

"I don't think anyone believes [the fiduciary rule] is going to make it easier for people to retire in this country," he said.

Most Democrats support the fiduciary rule, because they say it will bring more transparency to the process of saving for retirement and stop fiduciaries from offering conflicted advice.

Currently, financial advisers must offer good advice to their clients, but not necessarily the best advice. They are allowed to steer their clients toward more expensive products with higher fees that may not yield the highest returns.

The White House estimates that advice costs retirement savers $17 billion each year in lost money.

Rep. Rosa DeLauro (D-Conn.) accused those financial advisers of "robbing hard-working American families of their retirement savings."

"When it comes to retirement, every penny counts," she said. http://bit.ly/1rlPPI3

 

TARGETED CURES:

Join us on Wednesday, May 11 for Targeted Cures: A Policy Discussion on Treating Patients with Rare Diseases, featuring Energy & Commerce Committee Chairman Fred Upton (R-Mich.). Topics of discussion include: The public-private partnerships developing and delivering cutting-edge treatments and the path to making care accessible to the patients who need it most. Sponsored by PhRMA. RSVP here.

 

ON TAP FOR FRIDAY 

The Senate will be out. 

The House Energy and Commerce Subcommittee on Commerce, Manufacturing and Trade will hold a hearing to discuss issues in the pet medication industry. http://1.usa.gov/247dIVd

 

TOMORROW'S REGS TODAY

The Obama administration will publish 218 new regulations, proposed rules, notices and other administrative actions in Friday's edition of the Federal Register.

--The Department of Energy (DOE) will issue new efficiency rules for fluorescent lamp ballasts.

The Energy Department's Office of Energy Efficiency and Renewable Energy will issue new test procedures for these fluorescent lamps.

The new rule goes into effect in 30 days. http://bit.ly/1NXJyqJ

--The Department of Labor (DOL) will review its regulations for underground coal mines.

The Labor Department's Mine Safety and Health Administration will conduct an information collection request as it studies the high-voltage continuous mining machines standard.

The public has 60 days to comment. http://bit.ly/1VVnd5J

--The Department of Justice (DOJ) will examine smart gun technology.

The DOJ's National Institute of Justice will consider test methods "to determine whether the addition of a smart gun technology does or does not significantly reduce the reliability of the firearm system compared to existing firearms."

The public has 45 days to comment. http://bit.ly/2479CN1

 

NEWS RIGHT NOW 

FCC rule aims to help people with disabilities communicate http://bit.ly/1NXQIeG

Senators roll out changes to criminal justice bill http://bit.ly/1Tz459E

Labor chief knocks GOP 'waster of time' on fiduciary rule http://bit.ly/1XXjbqx

FCC advances business internet reforms http://bit.ly/1YVWUcX

Mayors push Obama to write methane regulations http://bit.ly/1NXRsQU

Transgender people step out from shadows to fight bathroom laws - The Washington Post http://wapo.st/1SwsPjF

FDA's role in Silicon Valley gets complicated as money pours into heath-related start-ups – The Washington Post http://wapo.st/247eUrR

Military draft may soon include women – The Huffington Post http://huff.to/1VWQnAD

Teen birth rates plummet for Hispanic and black girls – NPR http://n.pr/1NDlXAO

 

BY THE NUMBERS 

Over 166 million: People who live in countries with unhealthy levels of ozone or particle pollution. 

1 of 197: Long Beach, Calif.'s rank among metropolitan cities with high ozone days, making it the most polluted city. 

(Source: The American Lung Association's 2016 State of the Air report released Thursday.)  

 

QUOTE OF THE DAY

"Life expectancies are going up, so we should be doing everything we can to help people save for retirement," -- Rep. Phil Roe (R-Tenn.). The House passed Roe's legislation blocking the Obama administration's new regulations on financial advisers. http://bit.ly/1rlPPI3

 

We'll work to stay on top of these and other stories throughout the week, so check The Hill's Regulation page (http://thehill.com/regulation) early and often for the latest. And send any comments, complaints or regulatory news tips our way, tdevaney@thehill.com or lwheeler@thehill.com. And follow us at @timdevaney and @wheelerlydia.

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