Republicans in Congress are pushing back on a new Obama administration rule requiring financial services advisers to put their clients’ interests first, a regulation critics say could restrict advice given to low- and middle-income savers.
Opponents face long odds of actually stopping the new rule, however, because even if it passes Congress it would likely elicit a veto by President Barack Obama. A resolution of disapproval needs only a simple majority in the House and Senate, but two-thirds of the vote in the House and Senate would be required to overturn a veto.
Both the House and Senate this week introduced resolutions to block the new fudiciary rule. On Tuesday in the House, Rep. Ann Wagner, R-Ballwin, joined with two other House Republicans to introduce a resolution blocking the rule in the House. Sen. Roy Blunt, R-Mo., was also among 32 Republican senators who signed a resolution of disapproval to the rule in the Senate.
Obama said the rule is necessary as common-sense protection of investors from advisers tempted to recommend high-fee investments over others.
Read more: St. Louis Post-Dispatch