Financial services industry groups are ready and willing to help the Labor Department do a formal study of the potential impact of a redefinition of fiduciary responsibility, according to a new letter several trade organizations wrote to the department.
In the joint letter, representatives from the Financial Services Institute, the Financial Services Roundtable, the Securities Industry and Financial Markets Association and the American Council of Life Insurers thanked the Labor Department for asking the groups for help in developing a regulatory impact analysis of a proposed change to the way the department has long defined the term fiduciary. “We hope this expanded analysis will help provide appropriate direction to the department as you develop the re-proposed rule,” the groups wrote in the letter.
The Labor Department withdrew its original rule in September after the industry groups objected strongly to it on the grounds that as written, it would make getting even basic IRA advice too expensive for most U.S. workers.
FSI President and CEO Dale Brown expressed his group’s satisfaction with the Labor Department’s request for assistance from the industry. “We are pleased the administration wants to learn more about our industry so they can make an informed decision in the future,” he said in a statement. “Hopefully we can meet soon and get started on the process.”
Danielle Reed writes for Financial Planning.