August 30, 2017

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Rule Delay Right Move to Protect Retirement Savers

A reasonable delay will allow proper coordination between the SEC and DoL, resulting in an improved 'best interest' rule that will benefit even more savers than the rule currently proposed by just the DoL.

Rule Delay Right Move to Protect Retirement Savers
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Rule Delay Right Move to Protect Retirement Savers

 

WASHINGTON – Today’s proposal by the Department of Labor (DoL) to extend the deadline for full implementation of its “Fiduciary Rule” will help more savers maintain access to quality and affordable financial advice, according to the Financial Services Roundtable (FSR).

“A rule requiring financial professionals to act in the best interest of their customers is just common sense, but such a rule should not involve miles of bureaucratic red tape,” said Tim Pawlenty, CEO of FSR.  “A reasonable delay will allow proper coordination between the SEC and DoL, resulting in an improved ‘best interest’ rule that will benefit even more savers than the rule currently proposed by just the DoL.”

According to a Harper Polling survey of financial professional recently released by FSR, the currently proposed fiduciary rule will lead to fewer retirement savings choices for many Americans.  A large portion of the poll’s respondents (50%) report the rule is restricting them from serving their clients’ best interests. In addition, 75% of respondents who reported their typical clients have starting assets under $25K indicate they will take on fewer small accounts due to increased compliance costs and legal risks.

FSR believes the Securities and Exchange Commission (SEC) has the necessary expertise to take the lead and update a best interest standard that should apply to all financial advice. FSR looks forward to working with the SEC and DoL as they address this important public policy initiative.

 

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About The Author

The Financial Services Roundtable represents the largest integrated financial services companies providing banking, insurance, payment and investment products and services to the American consumer. Member companies participate through the Chief Executive Officer and other senior executives nominated by the CEO. FSR member companies provide fuel for America’s economic engine, accounting for $92.7 trillion in managed assets, $1.2 trillion in revenue, and 2.3 million jobs.

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