FSI Statement on DOL’s Proposed Exemption for Investment Advice Fiduciaries

Encourages alignment with SEC’s Reg BI and preserving investor choice

Today, the Department of Labor (DOL) released a proposed exemption for investment advice fiduciaries relating to retirement financial advice. This comes after the DOL’s fiduciary rule was struck down by the Fifth Circuit Court of Appeals in March 2018 following a challenge by a coalition of organizations, including the Financial Services Institute (FSI).

“We are thoroughly reviewing the rule proposal. However, we expect the Department heeded the concerns outlined by the Fifth Circuit Court of Appeals and consulted with the SEC to avoid conflicts with Regulation Best Interest (Reg BI),” said FSI President & CEO Dale Brown. “These regulations must work in tandem to prevent conflicting requirements for financial advisors working to diligently comply with the rules and to avoid creating confusion among investors. This will also ensure Main Street Americans have access to the quality, affordable financial advice they need to achieve their financial goals.”

The implementation date for the SEC’s Reg BI is set for Tuesday, June 30, 2020. 

“The SEC’s Reg BI achieves increased transparency and investor protection while also preserving their choice of financial advice, products, and services,” Brown said. “We are hopeful that the DOL’s proposed rule strikes the same balance. We look forward to providing comments and working with the Department to achieve a workable standard.”