Overnight Regulation: Tensions in administration over financial adviser rule

Welcome to Overnight Regulation, your daily rundown of news from Capitol Hill and beyond. It’s Thursday evening here in Washington, where the press corps is getting ready for the congressional correspondents dinner. Here’s the latest.

 

THE BIG STORY

The Labor Department’s move to regulate financial advisers has drawn pushback from within the Obama administration, new emails released by Senate Republicans suggest. 

The Labor Department is on the verge of finalizing a fiduciary rule that would require retirement investment advisers to act in the best interest of their clients. Business groups have blasted the regulation, warning it would drive up costs and deprive low-income people of investment advice.

{mosads}But the regulatory push has also created tensions inside the federal government, with agency officials at times battling behind the scenes, according to emails unearthed by Republicans on the Senate Homeland Security and Governmental Affairs Committee. 

The Securities and Exchange Commission (SEC) and the Treasury Department — traditionally two of the main regulators for the financial industry — have both raised concerns about the fiduciary push. 

The Treasury Department warned the Labor Department in March 2015 that the fiduciary rule would “fly in the face of logic.” The SEC, meanwhile, raised concerns about 26 provisions of the rule that were never resolved.

In a letter to Labor Secretary Thomas Perez sent last July, former SEC Commissioner Daniel Gallagher, a Republican, lamented the Labor Department’s “lack of concern for the [SEC’s] views on the issue.” He urged the Labor Department to “scrap” the regulation.

Other messages show friction between staffers at the Labor Department and the SEC. 

To continue reading, click here. http://bit.ly/1Tae6g0

 

ON TAP FOR FRIDAY 

The House Oversight and Government Reform Subcommittee on Transportation and Public Assets will hold a hearing on the oversight of federally leased vehicles. http://1.usa.gov/1QIumUK

The House Homeland Security Subcommittee on Emergency Preparedness, Response and Communications will hold a hearing to discuss efforts to defend the nation’s agriculture and food. http://1.usa.gov/1KOw5Wc

 

TOMORROW’S REGS TODAY

The Obama administration will publish 227 new regulations, proposed rules, notices and other administrative actions in Friday’s edition of the Federal Register.

–The Environmental Protection Agency (EPA) will delay new greenhouse gas reporting requirements for petroleum and natural gas systems.

The EPA proposed greenhouse gas reporting requirements in January, but is now extending the comment period to give the public more time to consider the changes. 

The rules include “monitoring methods for detecting leaks from oil and gas equipment.” They also include measures to calculate emissions caused by equipment leaks.

The public now has until March 15 to comment. http://bit.ly/1Q552ox

–The Fish and Wildlife Service (FWS) will delay plans to remove protections from an endangered species of plants.

The FWS proposed removing the protections for the Solidago albopilosa plant in September 2015, but is now reopening the comment period to give the public more time to consider the changes.

The public now has an additional 30 days to comment. http://bit.ly/1LIkLWG

–The Department of Labor will cap the fees that farmers can charge immigrant agricultural workers for providing three meals a day

The rules stem from the Labor Department’s Employment and Training Administration (ETA).

The notice goes into effect immediately. http://bit.ly/24rOcb9

 

NEWS RIGHT NOW 

GOP bill seeks to block ‘midnight regulations’ http://bit.ly/1QHY1xy

Obama to meet McConnell, Grassley to discuss Supreme Court vacancy http://bit.ly/24rUCqE

Reports: Immigration programs benefit the economy, families http://bit.ly/24rUzey

Pipeline regulators pressed to act on gas storage leaks http://bit.ly/24rTy66

Past remarks haunt both parties in Supreme Court showdown http://bit.ly/1QhCExt

Scalia spent his last hours with members of this secretive society of elite hunters – The Washington Post http://wapo.st/1QAkPsI

VA’s carrot-and-stick game: Raise salaries, limit appeal rights for its executives – The Washington Post http://wapo.st/1oB5zoV

Breyer on 8-member Supreme Court: ‘We’ll do our work’ – Politico http://politi.co/1R552m4

 

BY THE NUMBERS 

10 percent: Increase in income for immigrant families qualifying for Obama’s Deferred Action for Parents of Americans and Lawful Permanent Residents (DAPA) program. 

3.6 million: Number of undocumented immigrants who are parents of U.S. citizens or lawful permanent residents eligible for the DAPA program.

(Source: Migration Policy Institute and the Urban Institute) 

New studies are touting the economic benefits to families from immigration programs. http://bit.ly/1QIDDME

 

QUOTE OF THE DAY

“Unfortunately, those who believe that the SEC can stave off the heavy hand of [the Labor Department] are chasing fool’s gold,” — former SEC Commissioner Daniel Gallagher, a Republican, wrote in an email to Labor Secretary Thomas Perez. Emails show tensions between federal agencies over the Labor Department’s fiduciary adviser rule.

 

We’ll work to stay on top of these and other stories throughout the week, so check The Hill’s Regulation page (http://digital-staging.thehill.com/regulation) early and often for the latest. And send any comments, complaints or regulatory news tips our way, tdevaney@digital-staging.thehill.com or lwheeler@digital-staging.thehill.com. And follow us at @timdevaney and @wheelerlydia.

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