ADISA Submits Letter to DOL; Continues to Call for Member Action
Mar 17, 2017
ADISA has submitted a comment letter to the Department of Labor I support of its proposal to delay the applicability date of its new Fiduciary Rule and related exemptions by 60 days. ADISA believes that, without the delay, the Department have to conduct the multi-faceted appraisal required by the President’s recent executive order after the Rule is operational, leading to widespread duplication of effort and investor confusion if the Department’s amends (or rescinds) the Rule or any of the related exemptions after it completes its review.
In ADISA’s view, there is little provable downside or risk of loss associated with the proposed delay. As stated elsewhere, ADISA believes that the Fiduciary Rule initiative was not founded on adequate research into the effects of so-called “conflicted advice.” The brief analysis that drew broad conclusions from meager data regarding historical returns of broker-sold mutual funds did not support the Department’s wide-ranging rule-making.
ADISA, along with other groups, will endeavor to support the Department’s review efforts with appropriate research and considered and expert perspective. We will continue to submit comments as requested by the Department, and stand ready to meet with the Department if doing so will help it meet the terms of the President’s directive.
In the meantime, ADISA has issued a Call to Action, encouraging its members to write to the Department of Labor urging the delay of implementation. Comments and letters must be received by today, March 17, at midnight ET. Click here to view the Call to Action.
The letter was authored and signed by ADISA President John H. Grady, DLA Piper. To read the letter in its entirety, click here.