Barbara Roper’s Factual Inaccuracy

By: Kenneth E. Bentsen Jr.

Barbara Roper’s recent blog post this past Tuesday entitled “Industry to DOL: (Don’t) Mind Your Business” is not factually accurate.

Roper asserts that my statement, “the brokerage industry is highly regulated by the SEC and FINRA, including with respect to retirement accounts” is “irrelevant and wrong” because the Department of Labor (DOL), not the SEC and FINRA, has exclusive rule-writing authority under the Employee Retirement Income Security Act (ERISA).

We do not contest the DOL’s rule-writing authority. However, it is equally clear and unarguable that the SEC and FINRA have plenary authority and jurisdiction over all aspects of broker-dealer conduct and accounts, including without limitation IRAs. Dodd-Frank reemphasized the point in passing Section 913. FINRA highlighted it again when issuing Reg. Notice 13-45.

Bottom line: in the midst of a retirement crisis, the DOL’s fiduciary re-proposal will take away a middle class investor’s choice of working with a highly-regulated financial advisor at a time when they need retirement advice the most.

Kenneth E. Bentsen, Jr.

President and CEO

SIFMA