Release Date: March 14, 2017
Contact: Carol Danko, 202-962-7390, firstname.lastname@example.org
SIFMA Submits Comments to DOL in Support of 60-Day Fiduciary Rule Delay
Washington, DC, March 14, 2017 - SIFMA today submitted a comment letter to the Department of Labor on its proposed rule to extend the applicability date of its fiduciary rule by 60 days.
"The delay must be implemented post-haste to avoid a potential train wreck for tens of millions of retirement savers," said SIFMA president & CEO Kenneth E. Bentsen, Jr. "Firms are approaching the drop-dead date to notify customers of service changes to their accounts because of the rule, which could cause customer confusion and ultimately make retirement savings more difficult for many investors. The delay will allow the new administration to review the rule's impact on investors and the market, while avoiding further confusion and disruptions."
SIFMA makes the following arguments in support of the delay:
- The Delay is Necessary to Avoid Customer Confusion
SIFMA's members have devoted significant resources to comply by the deadline. However, given the President's memo calling for a review of the rule and the DOL's indication that the rule could change, it makes sense to delay the rule to avoid unnecessary customer confusion and concerns over a rule that could eventually change.
- Delay is Necessary to Address Questions in the President's Memo
The President has called for a review of the rule, which will take time. Failure to provide a delay in the face of this clear mandate from the President would be irresponsible.
- Delay is Necessary Because Current Data Relied Upon by the Department is Flawed
The current cost analysis used by the DOL is flawed and based on incorrect assumptions. A delay will allow time to provide the DOL with updated data and information on the changing products and services.
- Delay Must Become Effective on Date Published
Retirement savers could be adversely impacted if the delay is not effective on the date the final rule is published in the Federal Register. It is in the public interest to delay the rule as soon as possible.
The full comment letter may be read here: http://www.sifma.org/issues/item.aspx?id=8589965462
SIFMA is the voice of the U.S. securities industry. We represent the broker-dealers, banks and asset managers whose nearly 1 million employees provide access to the capital markets, raising over $2.5 trillion for businesses and municipalities in the U.S., serving clients with over $20 trillion in assets and managing more than $67 trillion in assets for individual and institutional clients including mutual funds and retirement plans. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit http://www.sifma.org.