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Friday, February 4, 2011

SIFMA Asks DoL to Reconsider Fiduciary Definition Change

February 3, 2011 (PLANSPONSOR.com) - The Securities Industry and Financial Markets Association (SIFMA) has asked the Department of Labor (DoL) to reconsider its proposed rule that would redefine the term “fiduciary” under the Employee Retirement Income Security Act (ERISA).

Logo of the Securities Industry and Financial ...Image via WikipediaIn its letter to the DoL, SIFMA noted that the proposal could critically impact the ability of individuals to reach a successful retirement, because the financial institutions most able to efficiently deliver investment assistance will no longer be able to do so without added cost to the plan participant or IRA account holder. If the agency will not reconsider its proposed rule, SIFMA requested that it carve out IRAs at this time to determine whether the unique costs and structure of IRAs would support a different fiduciary standard. …
The seal of the United States Department of LaborImage via Wikipedia“In the midst of other regulatory initiatives in this area, we ask the Department to reconsider this proposal and work with other regulators to ensure regulatory consistency,” said Tim Ryan, president and CEO of SIFMA, in the letter.
SIFMA contended that the DoL has not fully considered the costs of this proposal on small plans and IRAs and the manner in which their investment choices will be curtailed, or the costs on large plans that may be unable to engage in swaps, prime broker their assets, invest in alternatives, obtain futures execution and otherwise have their investment choices limited by the proposal. …
A copy of the letter can be found at http://www.sifma.org/issues/item.aspx?id=23239.
Rebecca Moore
editors@plansponsor.com
PLANSPONSOR.com - SIFMA Asks DoL to Reconsider Fiduciary Definition Change
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