National Association of Insurance and Financial Advisors

New York Life Agent Testifies on Potential Impact of Proposed DOL Rule

On Sept. 30, New York Life agent Ken Specht of
Kenosha, Wis., testified at a hearing before the House Ways and Means Committee Subcommittee on Oversight on the Department of Labor's proposed fiduciary rule. 
“I am committed to serving my client’s best interest. Not only is it the right thing to do and the only way that I am comfortable operating – but this is very much a personal business and a long-term relationship business,” Specht told the members. “Nearly all of my clients come from referrals and repeat business. … If I don’t operate in my clients’ best interest, word gets around in a community like Kenosha. Referrals will dry up, and I’m out of business.”
Specht, a NAIFA member, also said that while he “wholeheartedly supports” the DOL’s goal of a best interest standard, the  proposed rule, as written, could hurt middle class consumers by cutting off access to affordable advice and a secure retirement. “I understand and support the Department’s goal in crafting the rule, but simply put, as written it will not accomplish this,” Specht said.
NAIFA is encouraged that Rep. Richie Neal (D-MA) and Rep. Pete Roskam (R-IL) have committed to working together on legislation to make the proposed rule workable.  Both acknowledged agreement among Subcommittee members that it is important to preserve access to investment advice for small savers.  Rep. John Larson (D-CT) also expressed support for the possibility of bipartisan legislation. 
The hearing marked the first time that the Ways and Means Committee has taken up the fiduciary rule.  It provided the opportunity for Members on both sides to express concerns with the DOL proposal. 
Others on the panel were:
  • Bradford Campbell, Counsel, Drinker Biddle & Reath LLP
  • Patricia Owen, President, FACES DaySpa on behalf of the US Chamber of Commerce
  • Damon Silvers, Director of Policy and Special Counsel, AFL-CIO
  • Paul Schott Stevens, President and CEO, Investment Company Institute (ICI)
  • Judy VanArsdale, LPL Financial Advisor, enRich Private Wealth Management 

  • Posted October 8, 2015 IN
  • Comments (1)

Robert Scarr
Do not take away our right to work with our clients relative to what our licensing denotes.
10/8/2015 9:22:49 PM