U.S. Chamber Event Explores Fiduciary Impacts

NAIFA member Joe Cope and Rep. Ann WagnerNAIFA member Joe Cope, CFP, founder and CEO of Cope Connelly in Bethesda, Md., was part of an expert panel at last week’s “Fiduciary Duty: Assessing the Real World Impact” event put on by the U.S. Chamber of Commerce. As a participant in the “Advisor Perspectives” session of the meeting, Cope explained how the Department of Labor fiduciary rule is impacting clients and their relationships with advisors.

"The DOL rule does impact my conversations with small clients and the decision of whether or not to work with them has become more difficult," Cope said.
NAIFA has long expressed concerns that the DOL rule would reduce lower and middle-income consumers’ access to retirement investment products and advice and make the services provided by advisors more expensive. NAIFA has submitted comments and survey results to the DOL as the agency considers the rule’s impact on people trying to prepare financially for retirement. NAIFA will continue to work with regulators and members of Congress to ensure that the rule does not harm the people it is intended to protect.

Cope provided an example illustrating how the DOL rule is already disrupting his relationships with clients. He said:

Just last week I had a conversation with [a client] and I had a conversation with myself  ... as to whether or not to enact a very small rollover. It's a service that I want to give and it is specific to millennials. If any millennial asks you for help they are extending beyond their comfort zone. To say 'no' to a millennial who asks you for help is a fracture of a relationship that can almost not be repaired. And that fracture impacts: producing student loans, buying homes, insurance products, all the things that we do and care about.
Also at the U.S. Chamber event, Rep. Ann Wagner (R-Mo.) provided a Congressional Keynote Address and announced that she will introduce legislation this month that would repeal the DOL rule and require the Securities and Exchange Commission to conduct any rulemaking to “establish a best-interest standard for broker-dealers,” according to a report on her speech in Think Advisor.

You can view a video of the event on the U.S. Chamber website. Cope's comments begin around the 1:03 mark and Rep. Wagner's at about 1:42.
  • Posted September 14, 2017 IN

Blog post currently doesn't have any comments.