The Senate Employment and Workplace Safety Subcommittee of the Health, Education, Labor and Pensions Committee today grilled the Secretary of Labor, Tom Perez, on his agency’s proposal to impose a fiduciary standard on brokers advising clients on retirement-savings investments. Discussion generally hued to party lines, with Republicans strongly questioning the proposal and most Democrats just as strongly endorsing it. Sen. Warren (D-MA) called it a “no-brainer,” but Republicans feared its adverse impact on small brokers and on the product selection that would be available to lower-income savers. Secretary Perez of course also defended the proposal, but emphasized throughout the hearing that the proposal is just that, and the final rule may well include significant changes.
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