New study finds flaws in White House Report on DOL Retirement Regulation

A new report by the National Economic Research Associates (NERA) identifies flaws in figures cited in the White House’s Council of Economic Advisors Report concerning retirement savings advice. The report, “Review of the White House Report Titled 'The Effects of Conflicted Investment Advice on Retirement Savings,’” was released today by SIFMA.

Key findings: 
  • The Administration's estimated cost to retirees under current regulations is nowhere in academic literature. This approach is flawed in multiple ways." (pg. i)
  • The Administration ignores the negative consequences of similar retirement regulations in the UK. Europe Economics finds that in the first three months of 2014, about 310,000 clients stopped being served by their brokers because their wealth was too small for the broker to advise profitably (pg. 3).
  • The Administration gives short shrift to the benefits brokers provide and the possibility consumers seek these benefits In light of costs. (pg. 9, 11)
NAIFA supports efforts to assure retirees receive professional, ethical guidance in planning for their retirement, and encourages lawmakers and regulators to be certain that all levels of investors have access to affordable, reliable advice. NAIFA submitted comments to the DOL asking the agency to reconsider the proposed regulation and to make sure consumer access to retirement investment advice is not negatively impacted. 


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