In response to the Department of Labor’s announcement that it will withdraw and re-propose its rule defining fiduciary duty today, Robert Miller, president of the National Association of Insurance Advisors, issued the following statement:
“NAIFA is gratified that the Department of Labor has decided to re-propose its fiduciary rule and clarify what types of investment information and fee arrangements will be exempted. We look forward to reviewing the new proposal with a singular focus on ensuring that middle-market investors continue to have access to affordable professional investment guidance for their retirement planning.”
NAIFA will work with DOL to ensure that any new proposal adequately protects consumer access to retirement savings products and services while ensuring that consumers receive investment advice of the highest quality and reliability. As NAIFA indicated in previously submitted comments to the department, any DOL proposal should:
- Not extend ERISA-based regulation to individual retirement arrangements (IRAs),
- Include a robust seller’s exception to ensure retirement investors do not lose access to investment recommendations from broker-dealers and their representatives, and
- Not contradict the provisions of Dodd-Frank specifying that receipt of commissions and sales of proprietary products are not intrinsically fiduciary violations.
Additional Resources:
- Reps. Kline and Roe Welcome Labor Department's Decision to Reexamine Flawed Fiduciary Proposal.
- Prior to the announcement, Rep. Frank sent a letter to DOL asking to withdraw the proposed rule.
- According to InvestmentNews, an insider says an SEC fiduciary rule is unlikely this year.