This article originally appeared on InvestmentNews by Mark Schoeff, Jr.
Later this week, Kamala Harris is slated to be chosen as the Democratic vice presidential nominee at the party’s convention. Earlier this month, she signaled she opposes a Labor Department proposal that would reform investment advice rules for retirement accounts.
Harris, a Democratic senator from California, was one of 29 Senate and House Democrats who signed the Aug. 6 letter that criticized the DOL proposal for leaving retirement savers vulnerable to conflicted advice from financial advisers.
The proposal, which would replace a vacated Obama administration rule, would provide a “prohibited transaction exemption” to allow investment fiduciaries to receive compensation — such as commissions, 12b-1 fees and revenue sharing — that would otherwise be prohibited as long as they act in the best interests of plan participants.
“We urge the DOL to immediately withdraw both the final rule and proposed PTE and start over with a focus on the best interests of workers and retirees,” the letter states.
The letter was led by Democratic chairs and ranking members of House and Senate committees with jurisdiction over financial regulation. Harris is not a member of the Senate Banking Committee and doesn’t have a high profile on finance issues, but did join her colleagues on the comment letter.
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