Financial Planning Coalition Submits Comments on Re-Proposed DOL Fiduciary Rule
The Financial Planning Coalition today submitted a joint comment letter and issued a joint press release supporting the Department of Labor's (DOL's) re-proposed rule to amend the outdated definition of "fiduciary" under the Employee Retirement Income Security Act (ERISA). In its letter, the Coalition concludes that the rule represents long-overdue and needed consumer protections, but also recommends modifications to help make the rule more workable across business models.
The letter covers three main areas:
- The DOL's Re-Proposed Rule Represents Long-Overdue and Needed Consumer Protections. The re-proposed rule is needed to realign the current regulatory framework that allows for the misalignment of advisers' interests with those of retirement investors. By requiring fiduciary accountability for all advice related to retirement assets, the re-proposed rule will provide much needed protections to help retirement investors navigate the complex and confusing financial services marketplace.
- Arguments Against the Re-Proposed Rule Are Misplaced. Opposition arguments against the re-proposed rule do not adequately reflect the changes from the original rule proposal, are unsupported or rebutted by empirical research, and are inconsistent with the Coalition's experience in establishing a fiduciary obligation for its stakeholders.
- Modifications Recommended by the Coalition Will Make the Final Rule Stronger. The Coalition suggests modifications, clarifications and changes that it believes will only strengthen an already comprehensive rule proposal, ensuring protections for retirement investors while providing advisers and financial institutions flexibility in implementing the final rule.
Read the full comment letter
Read the full news release