Delaying new rules over retirement planning will help U.S. bank profits, according to one expert.
Congressman Joe Wilson, a Republican from South Carolina, introduced a bill last Friday designed to delay the introduction of the Department of Labor (DOL) fiduciary rule for two years.
The new DOL regulation, which requires financial advisers to act in the best interests of their clients when addressing retirement accounts, was due to begin on April 10.
Jeffrey Saut, Chief Investment Strategist at Raymond James told CNBC Friday that the fiduciary rule is damaging to banks.
"The new rule will force asset managers to cancel active management accounts and switch to passive management.
"This means investment banks will receive lower fees," he said by telephone.
Saut believes rather than protecting the retail investor, the new rules would force them in to poor investments.
"The investing public is selling active and buying passive at a time when they should be doing the opposite," he said.
Saut said the bill to delay the legislation by two years would effectively "kill it" and ultimately protect bank fees.
Joining the call to delay the bill is the U.S. Chamber of Commerce. The business lobby group said Wednesday that the bill was too expensive, unwieldy for advisors and has an unrealistic timeline.