Voices from all sides of the debate

BenefitsPro (Apr 14, 2015) -- Support, some of it wholesale, some of it guarded, came from all of the expected quarters Tuesday – as did opposition – after the Department of Labor unveiled its new proposed fiduciary standard.

Here’s a collection of those voices:

Kenneth Bentsen Jr., president and CEO, SIFMA

“This is a voluminous rule where the fine print matters. We want to ensure it protects investor choice and doesn’t unnecessarily reduce access to education or raise costs, particularly for low and middle-income savers. With so much at stake, we will thoroughly review the rule and its impact on investors, and express our views in the public comment period.”

Dale Brown, president and CEO of the Financial Services Institute

“IRA owners are already protected by robust federal and state rules governing the retirement market” he said, adding:  

“Over 200 bipartisan members of Congress have told the DOL and the administration to carefully consider the impact of the proposal on investor access to retirement advice, products and services — and most expected the OMB would take as long as necessary to ensure that any final rule avoids serious unintended consequences for Main Street investors. We have serious concerns that could have happened in only 50 days.”

Joseph Peiffer, president, Public Investors Arbitration Bar Association

“Too many investors lose their hard-earned retirement savings because their brokers sell investment products that pay a large commission but are not in the best interests of their clients.  This is a system that is broken and must be fixed.

“That is why PIABA is so encouraged by the Department of Labor fiduciary rule proposal.  It’s time to put an end to all of the game-playing and the loopholes in financial advice that cost Americans billions of dollars in retirement savings every year.  While the devil is in the details of a proposal like this, PIABA stands ready to assist the DOL to ensure that the current needless assault on Americans’ golden years stops once and for all.”

Barbara Roper, director of investor protection, Consumer Federation of America

“Current rules contain loopholes that enable many financial firms and advisors to put their own financial interests ahead of the interests of their customers.  With billions of dollars in excess fees at stake, industry has shown it will stop at nothing to defeat this rule. Release of this proposed rule for public comment is an essential step in the effort to ensure that the interests of retirement savers are protected.  It sends the message that the Administration will not be intimidated by industry scare tactics and it guarantees that all stakeholders will have a chance to review the proposal on the merits.”

John Berlau, senior fellow, Competitive Enterprise Institute

“The new Department of Labor fiduciary rule, which Obama officials have said will mandate that brokers and others only give investment guidance that serves savers’ “best interest,” will likely resemble Obamacare for your IRA and 401(k). Though the full regulation still has not been publicly released, there are troubling indications of paternalism from the previous Department of Labor rule withdrawn in 2011 and the Obama administration’s own talking points.”

Kathleen McBride, chair of The Committee for the Fiduciary Standard

“All those who have the privilege of advising retirement investors should do so as a fiduciary, under ERISA, in the sole interest of the investor. Families need access to trusted professional advice to help manage their hard-earned retirement nest egg, before and after retirement. Advisers who are fiduciaries, such as Registered Investment Advisers, already provide advice to retirement plans and retirement investors that is in the sole interest of the investor. And they have been providing such fiduciary advice for decades.

“We hope that the DOL’s proposal will serve retirement investors by ensuring that advice they receive is provided by a fiduciary.”

Cathy Weatherford, president and CEO, Insured Retirement Institute

“With the process open to public comment, we will now have the opportunity to continue to advance our discussions and to provide informed and constructive comments that will directly address this lengthy proposal. Doing so will help ensure that the 26 million Americans who regularly rely on financial professionals for help can continue to do so.”