Congressional sit-in disrupted by failed attempt to override veto of anti-DOL fiduciary rule bill

The House of Representatives failed Wednesday night to override a presidential veto of a resolution that would kill a Labor Department investment advice regulation. The vote, which occurred around 10:30 p.m., was used by House Republicans to break up a sit-in by Democratic lawmakers demanding action on gun-control legislation. The Democratic demonstration had shut down the House floor since late Wednesday morning. The veto override passed, 239-180, on a party-line vote, falling well short of the two-thirds majority needed to overcome President Barack Obama's rejection of the resolution. The failure of the effort was expected, as Democrats have remained steadfast in supporting the DOL rule, which requires financial advisers to act in the best interests of their clients in retirement accounts. (More: Everything you need to know about the DOL fiduciary rule as it develops) No House Democrat supported the resolution when it was originally voted on in late April. Only three Senate Democrats backed it when that chamber voted in late May. Mr. Obama vetoed the legislation earlier this month. Republicans have been just as determined in opposing the rule. Echoing financial industry arguments, they say it will significantly increase liability risk and regulatory costs for advisers and make advice too expensive for investors with modest assets. (Related: DOL's Thomas Perez confident anti-fiduciary rule lawsuits will fail) Proponents say the rule, which was finalized in April, would protect investors from conflicted advice that results in sales of high-fee products that erode retirement savings. Before the veto-override vote Wednesday, 65 members of the Financial Planning Association met with about 100 lawmakers and congressional staff as part of its annual advocacy day. Even though the regulation seems to be safe from legislative threats, they urged House members to uphold Mr. Obama's veto. "We're not taking anything for granted," Karen Nystrom, FPA director of advocacy, said in an interview Wednesday morning.