On Tuesday, the House passed a controversial measure sponsored by Rep. Ann Wagner, R-Ballwin, that would prohibit the Department of Labor from tightening rules on financial advisers before the Securities and Exchange Commission acts.
Republicans touted the measure by Wagner as protection for small investors who could lose advisers scared away by the tighter rules. Democrats defended the Labor Department’s proposal as protection against financial advisers who may be tempted to value fees for certain investments over their clients’ financial well-being.
The Retail Investors Protection Act passed the House, 245-186, but faces an uncertain future in the Senate. And President Barack Obama has threatened a veto if Wagner’s bill hits his desk.