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New investment advice rules stand as veto override falls short

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House Republicans have failed — by a wide margin — to overturn President Barack Obama's earlier veto of legislation to block enforcement of final U.S. Labor Department pension plan fiduciary rules.

The House of Representatives voted 239-180 Wednesday to overturn the veto, well short of the two-thirds majority required for a veto override

Following their failure to override the veto, which had been expected, House Republicans again sharply criticized the rules, which take effect next year.

“The American people need positive solutions that empower them to save more for retirement, not a fundamentally flawed rule that will restrict access to affordable retirement advice for those who need it most,” Rep. Phil Roe, R-Tenn., chairman of the House Health, Employment, Labor, and Pensions Subcommittee, said in a statement.

Under those rules, released in early April, retirement plan advisers could be at risk of civil penalties if they fail to consider customers' best interests, while employers could be at risk should they or their advisers offer suggestions on investments in the plans they sponsor.

The final rule replaces outdated rules that “did not ensure that financial advisers act in their clients' best interest when giving retirement investment advice,” the White House said earlier.

Several lawsuits have been filed by a variety of organizations, including the U.S. Chamber of Commerce, to strike down the rules.