DOL’s Fiduciary Rule in Focus as SEC Announces Delay

With many lawmakers still opposed to the Department of Labor’s (DOL) Fiduciary Rule, this week both the House Financial Services and Ways and Means Committee will tackle the issue.  The House Financial Services Committee will hold a markup on Wednesday of legislation to require DOL to wait 60 days after the Securities and Exchange Commission (SEC) issues its final rule before moving forward with its own rule.  Additionally, at that same hour, the House Ways and Means Committee will hold a hearing on the expected impact of the rule.

Notably, last week during the SEC’s Advisory Committee on Small and Emerging Companies meeting, Chairm Mary Jo White indicated that the Commission was still a ways off from putting out its version of the rule.  Instead, the SEC has been focused on crowdfunding rules, which are expected in the near-term.

Lawmakers to Hear from CFPB, Discuss Reforms

In addition to marking up legislation on DOL’s Fiduciary Rule, the House Financial Services Committee will consider legislation that would require the Consumer Financial Protection Bureau (CFPB) to have its own Inspector General.  This comes on the same week as Director Richard Cordray is set to testify before the Committee to provide his agency’s semi-annual annual report to Congress.  During the hearing, we expect continued pushback against the agency, as Republicans begin to ramp up their efforts to reform the CFPB.

This Week’s Hearings:

• Tuesday, September 29: The House Financial Services Committee will hold a hearing titled “The Semi-Annual Report of the Bureau of Consumer Financial Protection.”

• Tuesday, September 29: The House Financial Services Subcommittee on Housing and Insurance will hold a hearing titled “The Impact of Domestic Regulatory Standards on the U.S. Insurance Market.”

• Tuesday, September 29: The Senate Banking Committee will hold a hearing on the following nominations: Mr. Adewale Adeyemo, of California, to be an Assistant Secretary for International Markets and Development, U.S. Department of the Treasury; Mr. Amias Moore Gerety, of Connecticut, to be an Assistant Secretary for Financial Institutions, U.S. Department of the Treasury; and Mr. Jay Neal Lerner, of Illinois, to be Inspector General, Federal Deposit Insurance Corporation.

• Wednesday, September 30: The House Financial Services Committee will hold a markup of various pieces of legislation, including on the CFPB and DOL’s Fiduciary Rule.

• Wednesday, September 30: The Senate Banking Subcommittee on Securities, Insurance, and Investment will hold a hearing titled “Oversight of the Securities Investor Protection Corporation.”

• Thursday, October 1: The Senate Banking Committee will hold a markup of “The American Crude Oil Export Equality Act.”

Regulatory Activity

SEC to Hold Meeting on Investment Company Act, Investment Advisers Act

On Tuesday, September 29, the Securities and Exchange Commission (SEC) will hold a day-long meeting focused on the Investment Company Act and Investment Advisers Act.  The event will consist of several panels focused on: (1) Asset Management Pioneers; (2) The History of the Asset Management Industry; (3) Diverse Perspectives of the Asset Management Industry; and (4) Regulators’ Views of the Asset Management Industry.  Four of the current SEC Commissioners, as well as the SEC’s Chief of Staff will participate in this event.