As NAIFA Waits for DOL Rule, Politico Has Trouble Finding Consumers It Would Help

NAIFA, like everyone else, anticipates that the Department of labor is set to announce tomorrow its final fiduciary rule for advisors providing their clients with retirement advice and services. NAIFA has worked diligently throughout this process to educate the administration and members of Congress about the rule’s potential unintended consequences that could deprive middle-market savers of access to professional, individualized advice. While we have not seen the final rule, indications are that DOL may have addressed some of NAIFA’s concerns, but not nearly enough of them.

NAIFA will provide an in-depth analysis of the rule and tools to help our members understand its implications and consequences as quickly as we are able after the rule comes out. We will also continue to work with members of Congress who have raised concerns about the DOL rule and have proposed legislative alternatives.

While the rule’s unintended consequences are yet to be known, an article in Politico points out that it is difficult to identify who the new regulation is likely to help.  According to the article, “when pressed for specific families who've lost savings due to the conflict of interest that the fiduciary rule is designed to eliminate, the Labor Department can cite only a handful.”

The article also quotes NAIFA President-Elect Paul Dougherty, who cites an example of how the DOL rule is likely to prevent him from serving a middle-market client of his.
  • Posted April 5, 2016 IN

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