Financial professionals like you have an important part in helping clients grow their savings and achieve a financially secure retirement. But a new proposal from the Department of Labor (DOL) would impact millions of American retirement savers and their relationship with their financial professionals.
The proposed rule is intended to impose fiduciary status on all financial professionals who provide valuable services to retirement savers. After careful and thoughtful review of the proposal, it is clear that the proposed rule will have serious and far-reaching adverse consequences including depriving retirement savers of their personal choice on how they choose to plan for their retirement, invest their retirement savings, and meet their financial goals. It would:
Force 18 million middle-income retirement savers into no- and low-service,
do-it-yourself retirement accounts – depriving them of meaningful, personalized retirement advice.
Reduce the availability of workplace retirement plans for small-business workers
Prevent workers from accessing help from financial professionals when changing or retiring from their jobs and discussing the advantages and disadvantages of their financial options
Limit consumer choice regarding retirement products and financial professionals
Make common forms of financial professional compensation, such as commissions, illegal unless onerous conditions and stringent requirements are met – many of which have been deemed unworkable by legal and ERISA experts
Given the length, complexity and unworkable structure of this proposed rule, we believe any modifications will be difficult to achieve the complete overhaul necessary to avoid detrimental ramifications for retirement savers. It is imperative for Congress to intervene and advance a legislative alternative to ensure the proposed DOL rule does not harm American retirement savers by limiting consumer choice and depriving clients of personalized retirement advice.
Outgoing SEC Commissioner Dan Gallagher warned late Monday that the Department of Labor’s fiduciary rule for pension plan advisors will harm investors and the capital markets. By pushing for asset-based fee arrangements and making commission compensation nearly impossible, the DOL is acting as a government nanny, Gallagher contended, and is stripping investors of their ability to choose which advice to follow. “Investors benefit from choice: choice of products, choice in advice providers and choice in making decisions for themselves,” he said.
Take action now! Urge your Members of Congress to stop this unworkable rule and support legislation that provides a best interest standard that further protects retirement savers, maintains personal choice, and enhances their relationship with their financial professionals.
Click on the link below, and review the information. Please select the “take action now” link which takes you to a page to enter your zip code. Then you can sign the letter to support the effort to protect our industry and consumer choice.