Is there revolution in the ranks? In the flood of comments letters from interested stakeholders on the DOL fiduciary rule proposal, one in particular stood out.
Small Business Administration’s Office of Advocacy, (which it should be noted is an independent arm of the Obama Administration) claims that the Initial Regulatory Flexibility Analysis (IRFA) “lacks essential information required under the Regulatory Flexibility Act (RFA).”
The office describes itself as an “independent voice for small business within the federal government, the watchdog for the Regulatory Flexibility Act (RFA) and the source of small business statistics.
“Advocacy advances the views and concerns of small business before Congress, the White House, the federal agencies, the federal courts and state policy makers.”
In the letter, addressed to Assistant Secretary of Labor Phyllis Borzi, Advocacy says “the IRFA does not adequately estimate the costs of the proposal or the number of small entities that would be impacted by it.
“For example, small business stakeholders advise Advocacy that the proposed rule would likely increase the costs associated with servicing smaller plans sponsored by small business employers.”
The letter concludes by calling on the DOL to republish for public comment a Supplemental IRFA before proceeding with the rulemaking.
“Based on this feedback, Advocacy encourages [DOL] to consider ways to decrease the potential small business burdens of the proposed rule, including expanding the scope of exemptions contained in the proposal.”
See Also:
- 401k-Friendly ‘SECURE 2.0’ Bill Advances in House
- Fiduciary Fight: Automated Advocacy is Now a Thing
- Survey: Higher Contributions, Better Balances Among 403(b) Plans
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
