Friday, January 17, 2014

Democrats Continue to Urge Caution on DOL Fiduciary Rule

Congressional Democrats continue to urge the Department of Labor to proceed with caution when it comes to expanding the fiduciary standard for investment advice. The latest communication comes from members of the New Democrat Coalition to Secretary of Labor Thomas Perez.

The lawmakers concerns center on fears that the new rule will restrict access to retirement tools and help.  From the letter:
We certainly want to protect plan participants, IRA owners and plan sponsors from ufnair and deceptive practices. But this should be done in a way that does not restrict access to critical investment assistance. While the original rule would have had little effect on wealthy investors or large businesses, it inadvertently could have significantly restricted the availability of investment help to low-, and middle-income individuals and small businesses."
The DOL rule is expected to be released around August 2014.