DOL Proposes 18-Month Delay of Fiduciary Rule

The U.S. Department of Labor has proposed delaying the applicability date of key provisions of the DOL fiduciary rule for 18 months, from January 1, 2018 to July 1, 2019. The proposal is under review by the Office of Management and Budget.
 
“NAIFA welcomes the DOL’s decision to seek a delay of the fiduciary rule applicability dates and extension of the transition period,” said NAIFA CEO Kevin Mayeux. “There is so much at stake for everyday Americans investing for retirement who rely on the products and services that only insurance and financial advisors can provide that we believe DOL should have abundant time to review the rule’s potential impact on consumers.”
 
NAIFA has repeatedly expressed concerns that the rule is likely to increase costs for middle- and lower-income retirement investors and cause them to lose access to individualized advice.
 
“NAIFA has submitted comments to the DOL outlining our concerns about the DOL fiduciary rule and providing data from a NAIFA survey,” Mayeux continued. “The survey found, because of the DOL rule, 91 percent of advisors have already experienced or expect to experience restrictions on product offerings to their clients. Nearly 90 percent believe consumers will pay more for professional advice services, and 75 percent have seen or expect to see increases in minimum account balances for the clients they serve.

Our survey and comment letter provide DOL with important data for their review, and we provide them in the interest of helping Secretary Acosta and the Department ensure the best outcome for both NAIFA members and American consumers. NAIFA will continue to provide DOL with any assistance we are able as the department evaluates the rule.”
 
  • Posted August 10, 2017 IN
  • Comments (2)


Comments
B. Douglas Johnson
Been in this business three generations. I am in my 39th year.

The DOL Rule in my opinion is nothing more than the Obama Administration's attempt to "socialize" the US Retirement System much like they did in health care. Take control of the business and replace private sector entrepreneur's with more government employees. Set the earnings rate and fund more socialist programs with the difference. Then there is the US Trail Lawyers insertion into the bill allowing for class action litigation against the advisor and the broker dealer. Guess who will pay the cost of class action settlements. THE US INVESTOR!

There is more.

Lets say that the US Federal Court of Appeals reverses the lower court ruling, which I think that they will do, and the DOL returns IRA's to the jurisdiction of the SEC where it has been since the 1930's and that the DOL Rule gets imposed on the 401K Plans!

What employer in their right mind will keep a 401-K program in place when the owner and the employees are exposed to the cost of class action litigation?

The answer is NONE!

This issue has become a SAGA with no end in sight, only delays. This rule is garbage and needs to be DUMPED by Secretary Acosta and President Trump.

If you read the media accounts of where the majority of fraud is occurring in the retirement world, it is with the "HIGH WIRE" brokers!
It is not the quite majority of Registered Reps/ Brokers and Broker Dealers who go about the business of serving their customers very well.

It is past time to place an end to this madness!
KILL THE DOL RULE NOW!
8/15/2017 5:02:54 PM
Florida Health Insurance
I think its great that NAIFA will continue to provide DOL with all of the assistance needed for the department to evaluate its rule.
8/12/2017 7:29:17 PM