A House subcommittee approved the Retirement Security Advice Act Thursday afternoon, prompting its proponents to insist that the House will pass it by year's end. It was the quickest markup of a bill in the history of the Committee on Education and the Workforce, lasting a short six minutes. But brewing far from the corridors of those meeting halls is an opposition that hopes for the bill's demise in the Senate.
Many financial planners, the American Association of Retired Persons, the massive union organization AFL-CIO all oppose the bill. Consensus among the opposition groups seems to be that all support making advice more-readily available to 401(k) investors, but they want to limit who provides it. Opponents say the bill allows mutual fund providers to steer workers toward products with higher fees. That conflict of interest, they say, will potentially result in bad investment advice and high costs to investors.