Fiduciary Rule Proposal – Executive Summary

SIFMA  is pleased to provide comments regarding the Department of Labor’s (“Department”) proposed regulation under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) that would redefine the term “fiduciary” under section 3(21) of ERISA and section 4975(e) of the Internal Revenue Code of 1986, as amended (the “Code”). SIFMA appreciates the opportunity to comment and hopes that our comments are helpful to the Department as it assesses the dramatic impact of the proposal on the millions of American investors benefitting today through participation in retirement plans, Individual Retirement Accounts (“IRAs”) and other retail accounts.   We respectfully request an opportunity to testify at the Department’s August 10-13, 2015 hearing.

Our comments reflect SIFMA’s deep concerns that the Department has proposed a rule that would harm American investors, while completely re-casting the ERISA definition of who is a fiduciary when providing investment advice for a fee.  They have greatly expanded the scope of service providers subject to the fiduciary requirements of ERISA and the Code, and the significant prohibited transactions that come with such status under ERISA and the Code, while creating very limited, inflexible, and prescriptive exceptions and exemptions that do not work and will not be in the best interest of American retirement investors.  The net effect is that this proposal, if enacted, would limit the ability of Americans to continue to receive personalized investment guidance for retirement plan accounts, which would result in a less secure retirement for so many Americans already struggling to save and invest for their financial futures.

See Also:

United States Department of Labor: Conflict of Interest Proposed Rule

See Also:

• The Fiduciary Rule Itself
• Best Interest Contract Exemption (BIC exemption)
• Principal Transactions
• Prohibited Transaction Class Exemption (“PTCE”) 86-128
• Prohibited Transaction Class Exemption (“PTCE”) 84-24
• Prohibited Transaction Class Exemption (“PTCE”) 75-1, Part V
• Additional Exemptions
• Asset Management Group
• NERA Analysis: Comment on the Department of Labor Proposal and Regulatory Impact Analysis
• Deloitte Report on the Anticipated Operational Impacts to Broker-Dealers of the Department of Labor’s Proposed Conflicts of Interest Rule Package
• NERA Memo to SIFMA: Answers to Questions Regarding NERA’s “Comment on the Department of Labor Proposal and Regulatory Impact”
• SIFMA Submits Comments to EBSA Regarding Questions on Deloitte’s Report on the Anticipated Operational Impacts to BDs of the DOL Fiduciary Rule Proposal
• SIFMA Submits Supplemental Comments to EBSA in Regards to the DOL’s Fiduciary Rule Proposal (Follow-up to August Hearing)
• Economists Incorporated Review on the 4 Studies Submitted to the DOL on the Fiduciary Rule Proposal