Red Oak Blog
News that affects your business and ours.
The Department of Labor – Proposed Fiduciary Definition
The Department of Labor (DOL) has proposed changes to the fiduciary definition under the Employee Retirement Income Security Act. This change has far-reaching implications for your retirement plan and individual retirement account (IRA) businesses and represents a significant adverse effect on individual investors and retirement savings.
This is a perfect example of one governmental agency not coordinating or communicating with another agency. The DOLs proposed change in fiduciary definition is not coordinated with the potential fiduciary rules that may be proposed by the U.S. Securities and Exchange Commission (SEC). In addition this proposal conflicts with some of the already existing securities laws. This will probably result in increased regulatory complexity, increased costs for individual investors, and fewer choices for retirement and savings plans. This proposed change is particularly significant for consumers using IRAs as part of their retirement plan. If the regulation is finalized in its current form, IRA holders will no longer be able to consult with and receive recommendations from registered representatives like they currently do.
Therefore I would like to encourage you to contact members of Congress and urge them to contact the Department of Labor (DOL). They should request that the DOL withdraw their proposed changes to the fiduciary definition under the Employee Retirement Income Security Act and/or coordinate their efforts with the SEC.
For more information regarding the pending DOL rule and how to contact members of Congress, click on this hyperlink SIFMA Legislative Action Center which will direct you to the Securities Industry and Financial Markets Association (SIFMA) website.
This web page will walk you through sending letters to your Congressmen. Just enter your contact information and click on the “Review your Message” button to send your letters. The system will select the appropriate Congressmen for you and send your letter to the. It is quick and easy and takes less than 2 minutes to complete. It will even allow you to forward the information to your friends and colleagues to garner their support as well.
Your support is crucial as this issue is of great importance to your customers, your retirement business, and your company’s continued success. Since elected officials place enormous importance on the views they hear directly from constituents, you are in a position to provide tremendous help by letting your voice he heard and counted.