Gaudreau Testifies for NAIFA at House Subcommittee Hearing



NAIFA President Jules Gaudreau testified last week before the House Committee on Education and the Workforce that “the effort to craft a bipartisan legislative alternative to the DOL [fiduciary] proposal is critically important.”
 
The Department of Labor’s proposal, which would require advisors and their clients to sign a best interest contract before the advisors even initiate discussions on investment products, is unworkable. It would limit IRA and 401(k) investors’ and small business owners’ access to advice and would likely increase costs.
 
Reps. Richard Neal (D-MA), Peter Roskam (R-IL),  Phil Roe (R-TN), John Larson (D-CT), Buddy Carter (R-GA) and Michelle Lujan Grisham (D-NM) formed a congressional working group that developed principles for legislation that would create a best-interest standard for advisors while avoiding the problematic requirements and restriction of the DOL proposal. In a press release Friday the group indicated it is finalizing the legislative language and expressed optimism that they will introduce a bill soon.
 
“We do not believe the DOL rule is consistent with the principles described by Representatives Roskam and Neal and the other leaders of this effort,” Gaudreau testified. “For example, the DOL favors fee arrangements that will result in less access to education and advice, and fewer choices for many savers who cannot afford such fee-only arrangements.”
 
“Advisors in my firm offer and use both fee-based models and commission models, depending upon the specific needs of the clients,” Gaudreau added. “We are not opposed to fee arrangements, but we strongly believe that preserving client choice is critical.”
 
Articles quoting Jules Gaudreau’s congressional testimony
  • Posted December 7, 2015 IN


Comments
Blog post currently doesn't have any comments.