Joint Trade Associations Urge Department of Labor to Extend Timeline on Proposed Retirement Security Rule

Washington, DC, November 8, 2023 – SIFMA today joined with 17 trade associations in sending a letter to the Department of Labor (DOL) requesting an extension of the 60-day comment period for the DOL’s proposed Retirement Security Rule and considerable amendments to a number of Prohibited Transaction Exemptions (Proposed Rule).

“The Proposed Rule makes significant and unanticipated changes to the current regulatory framework that will require significantly more time for meaningful analysis and comment, and to understand how this proposal would impact access and choice for retirement savers,” the organizations wrote in the letter.

The letter noted this brief comment period for a proposed rule on the definition of a fiduciary is unprecedented, notably when compared to the 2010 Fiduciary Rule and 2016 Fiduciary Rule and Related Exemptions were released; the DOL should again provide at least a similar comment period, especially for a proposal that is nearly 500 pages long.

“DOL has only granted 39 workdays for interested parties to review and comment. An extension would benefit not only the commenters, but DOL itself. DOL should use comments as a resource, but providing too short of a comment period limits the possible benefits,” the letter continued. “Furthermore, DOL’s stated intention to hold a public hearing approximately 45 days after the Proposed Rule’s publication in the Federal Register effectively shortens the 60-day comment period for those who request to testify at the hearing because they will need to prepare their comments in time for the hearing. By setting the hearing date before the close of the comment period, DOL is communicating that this is merely a ‘check the box’ exercise, rather than an effort to receive helpful feedback. Holding the hearing after the end of the comment period would allow for DOL to ask questions about the comments.”

The letter, signed by the below organizations, further expands on these views and can be found here.

Alternative & Direct Investment Securities Association (ADISA)

American Bankers Association (ABA)

American Benefits Council (ABC)

American Council of Life Insurers (ACLI)

Committee of Annuity Insurers (CAI)

Financial Services Institute, Inc. (FSI)

Finseca

Indexed Annuity Leadership Council (IALC)

Institute for Portfolio Alternatives (IPA)

Insured Retirement Institute (IRI)

Investment Company Institute (ICI)

National Association for Fixed Annuities (NAFA)

National Association of Insurance and Financial Advisors (NAIFA)

Securities Industry and Financial Markets Association (SIFMA)

SPARK Institute

The ERISA Industry Committee (ERIC)

The ESOP Association

U.S. Chamber of Commerce

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SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s one million employees, we advocate on legislation, regulation and business policy affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development.  SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA)