The US House of Representatives yesterday passed a landmark legislation, the CHOICE Act, which amongst a broad overhaul of the financial sector eliminates the fiduciary rule. The fiduciary rule is set to go into partial effect today, but the battle to get rid of it is far from over. Though the House has now passed a bill that which kills the DOL rule, the CHOICE act has an uncertain fate in the Senate, where Democrats are stronger. It was largely approved along party lines yesterday, but even if it does not make it through the Senate, aspects of it are expected to get approved by Congress or taken up by the Trump administration. The Senate appears to be trying to craft its own financial bill.
FINSUM: This is a good start for the overhaul package. As we see it, there are two ways the fiduciary rule could die. Firstly, through a legislative package like the CHOICE Act. And secondly, through a thorough economic review by the DOL which could lead to rescinding the rule.