Nine senators urged the Labor Department and Office of Management and Budget to quickly finalize the DOL’s proposed rule amending the definition of a fiduciary.

The Labor Department proposed the Retirement Security Rule, commonly referred to as the fiduciary rule, in late October. The rule would make changes to the definition of an investment advice fiduciary under ERISA, causing one-time advice, such as rollovers, to fall under the fiduciary definition if other conditions are met.

“The proposed rule ensures that every retirement saver who seeks the assistance of an investment professional will receive advice that puts their best interests first,” wrote Sens. John Fetterman, D-Pa.; Brian Schatz, D-Hawaii; Cory Booker, D-N.J.; Elizabeth Warren, D-Mass.; Sheldon Whitehouse, D-R.I.; Bernie Sanders, I-Vt.; Peter Welch, D-Vt.; Ed Markey, D-Mass.; and Laphonza Butler, D-Calif., in a March 26 letter to Acting Labor Secretary Julie Su and OMB Director Shalanda Young.

On March 8, the Labor Department sent a final version of the rule to the OMB for review, and the office has up to 90 days to finish its review, unless it extends the time frame. Once a review is completed, the DOL will finalize the rule soon after.

“Contrary to what some say, the proposed rule will not constrict access to financial advice,” the senators wrote. “Indeed, many high-quality financial planners already operate under a fiduciary standard, serving clients across the income spectrum.”

Industry feedback to the rule has varied widely, though some have raised concerns that the rule would harm financial professionals.

Earlier this month, a DOL official said the final rule will reflect public feedback, which included about 425 substantive comment letters and almost 20,000 petitions.

“We have taken the comments very seriously and that’s reflected in the current version but also in what will come out of OMB, but I can’t really share the details,” Ali Khawar, principal deputy assistant secretary for the DOL’s Employee Benefits Security Administration, told Pensions & Investments in an interview.

The fiduciary rule has a long, complex history, as a previous iteration of the rule was overturned in court. However, the senators said the newest proposed rule is consistent with ERISA and “narrowly tailored to comply with recent legal precedent.”

“Savers who receive conflicted advice unknowingly take risks that may imperil their retirement funds and may cost them dearly in the long run,” the senators wrote. “We urge swift implementation of the proposed rule.”

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