Sen. Elizabeth Warren urges DOL to implement fiduciary rule without delay

She cites financial company leaders who have said they are prepared to comply with rule as is

Sep 5, 2017 @ 12:27 pm

By Investment News

Sen. Elizabeth Warren (D-Mass.) has sent a letter to Labor Secretary Alexander Acosta asking him to implement the fiduciary rule in full, and not press forward with a delay of its partial applicability from January 2018 to July 2019.

A delay, she wrote "would endanger billions of dollars in Americans' hard-earned retirement savings and ignore the preparation and positive outlook on the rule that many financial services and insurance companies have repeatedly expressed."

In her letter, she cited the earnings calls of many of those financial companies in which they indicated that they are prepared to comply with the rule in its current form and that many believe it to be in the best interests of their customers. She cited those comments in contrast to the companies' "alarmist" lobbying efforts in which they argue that the rule would create "major — and in some cases insurmountable — obstacles" for advisers and that the rule "has already resulted in dislocations and disruptions of retirement services."

In a separate letter, Sen. Warren asked Securities and Exchange Commission Chair Jay Clayton to review this evidence as the SEC solicits public comment on rule-making in a similar area.

Sen. Warren also cited a new Morningstar report outlining a number of positive changes that companies already have made in response to the rule, including the introduction of innovative products that will lower fees, increase returns and "benefit investors by reducing conflicts of interest and adding transparency."

0
Comments

What do you think?

View comments

Most watched

Events

Finding your edge from Tony Robbins

Guru Tony Robbins has helped a lot of people, but armed with his psychology Financial Advisor Josh Nelson has helped his practice soar.

Events

Finding innovation in your firm

Adam Holt of AssetMap explains how advisers understand they need to grow, but great innovation may be lurking right under your nose.

Latest news & opinion

SEC sets June 5 date for vote on Regulation Best Interest

Commission adds new item to agenda: Interpretation of broker guidance that qualifies as advice

House passes SECURE retirement bill with massive bipartisan support

The measure allows small employers to band together to offer plans and raises the RMD age. Another provision eases use of annuities in 401(k)s, which critics say goes too far

10 IBDs with the most annuity revenue

Here are the independent broker-dealers that brought in the most annuity revenue last year.

DOL sets date to propose new fiduciary rule

The regulation, expected in December, likely will be contoured to the SEC's new advice standards.

LPL expanding platform to include employee brokers

The largest IBD in the country has agreed to buy a small broker-dealer in Florida to kick off the new effort.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print