ADISA Submits Comment Letter to DOL Regarding Proposed Fiduciary Rule

Jul 21, 2015

ADISA’s Board of Directors submitted the following comments with respect to the Department of Labor’s re-proposed rule defining who is a “fiduciary” by reason of providing investment advice for a fee or other compensation to retirement savers and retirement accounts (herein, the “Fiduciary Rule”), as well as the related “Best Interest Contract” Exemption (“BICE” or “BIC Exemption”). 
Summary of Comments
ADISA believes that the Proposal suffers from several fundamental flaws, and as such should be withdrawn by the DOL.  As discussed below, these flaws fall into three categories:

A.      The Proposal unfairly and improperly targets financial advisers who receive variable compensation, and would eliminate the ability of financial advisers and their clients to choose the service model most appropriate to their needs, especially the needs of younger and/or lower net worth individuals.

B.     The Proposal represents a piece-meal approach to regulating financial advisers, which will only create confusion and differential treatment of savers and investors generally. 

C.     The BIC Exemption would limit the types of products and programs available to retirement accounts and their owners, and potentially negatively impact their ability to meet their savings and retirement goals. 

Read the letter in its entirety here.
The Drafting Committee included:
Chair John H. Grady (RCS Capital Corporation), ADISA Vice President and Legislative & Regulatory Committee Chair; and members William Winn (8558 Group), Robert Mather (Cabot Lodge Securities), Mike Bendix (DFPG Investments), Mark Kosanke (Concorde Investment Services), and John Harrison (ADISA Executive Director). ADISA President Thomas Voekler (Kaplan Voekler Cunningham & Frank) signed the letter.