House Votes to Halt SEC Regulation Best Interest

Waters' amendment likely faces a tough road in the Senate, however.

"Reg BI represents a substantial strengthening of consumer and investor protection compared to existing law," IRI said in a statement. "It requires all financial professionals including those that work for and with IRI member companies, to operate under a new, more stringent and robust regulatory regime that imposes considerable new responsibilities on financial professionals and firms."

Waters, of California, was among 35 House Democrats who complained to SEC Chairman Jay Clayton late last year that the agency's Reg BI — part of the securities regulator's much-anticipated advice standards package — was not a true fiduciary standard.

Investment Company Institute President and CEO Paul Schott Stevens said that Reg BI "ensures investors are afforded strong protections when they receive recommendations from financial intermediaries. Passage of this amendment seemingly relitigates the DOL fiduciary rule, which was vacated by the Fifth Circuit Court."

Preventing the SEC from implementing Reg BI, Stevens added, "creates a legal void that leaves millions of retail savers without critical investor protections. ICI urges Congress to strip this language from the final spending bill."

— Related on ThinkAdvisor:

• Ron Rhoades: SEC Reg BI Is 'Greatest Securities Fraud in History'
• The Good, Bad and Ugly of SEC's Reg BI and Advice-Standards Package