Damn the torpedoes; full speed ahead. Labor Secretary Thomas Perez is moving forward with issuing a final fiduciary rule proposal for financial advisors despite concerns from some Democrats and Republicans that low- and middle-income workers would be negatively affected.
The Hill reports that Perez responded to Rep. Ann Wagner, R-Mo., in a letter earlier this week. Wagner, Andy Barr, R-Ky., David Scott, D-Ga., and Lacy Clay, D-Mo., sent a letter in late July to the DOL warning that the fiduciary proposal put forward by the Obama administration could limit access to quality financial advice for the middle class.
Perez and the administration countered that “fiduciary rules are needed to better protect consumers from getting bad advice from their advisers, who could be benefitting off commission sales from financial institutions,” according to The Hill.
“We will move forward towards issuing a Final Rule that balances the input we have received,” Perez wrote to Wagner. “The Department has undertaken incredibly thorough public outreach over the past five years as we have designed this proposal. When I became Labor Secretary two years ago, I committed to slowing down the process to ensure that all voices could be heard.”
Perez told Wagner that DOL officials “continue to welcome input on how to refine and streamline this proposal so that when we publish a Final Rule, we can all be sure it is reflective of relevant input and achieves its desired goals.”
The Hill notes that DOL officials are having a hearing this week, which critics contend is little more than political theater as DOL officials continue to aggressively move toward implementation.
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.
