Key takeaways from the first day of an unprecedented four days of a public hearing at the Department of Labor (DOL) to discuss its proposed best interest fiduciary rule:
Industry remains opposed to the best interest standard for their clients, while claiming otherwise.
“As the industry witnesses today made clear again, industry will only support a DOL rule putting their client’s best interest first as long as they don’t really have to follow it,” said Dennis Kelleher, President and CEO of Better Markets. “Filling the rule full of loopholes, as the industry has requested, would effectively eliminate the requirement to put their client’s best interests first.”
“The allure of higher compensation nearly always wins, to the detriment of the consumer,” – Ron Rhoades, Program Director, Assistant Professor of Finance, Western Kentucky University.
Workers and retirees deserve advice under a best interest standard that protects them from brokers and advisors who siphon off billions of their hard-earned savings every year.
“The time is long past to ensure that advice provided to those who spend a lifetime working to save and invest for a secure retirement is in their sole interest,” – David Certner, AARP.
“…a status quo that has been largely beneficial for [industry] and not for working families,” – Barbara Roper, Consumer Federation of America
“The financial industry is very adaptable and it will make it work especially when its $14 trillion,” – V. Raymond Ferrara, Chairman and CEO, ProVise Management Group LLC.
“Requiring that the clients’ interests should come first is a no brainer that is long overdue,” said Dennis Kelleher of Better Markets.
Nothing from today’s hearing has changed the fact that the DOL has all the information and feedback it needs to move forward quickly to finalize this rule to give workers and retirees the unbiased and conflict-free advice they need to enjoy a secure retirement.