SIFMA Opposes DOL's Proposed Retirement Regulation

SIFMA submitted substantive letters in opposition to the Department of Labor ("DOL") reproposed regulation regarding the definition of "fiduciary" and other provisions under the Employee Retirement Income Security Act ("ERISA"). The letters covered (1) the fiduciary rule, 2) the Best Interest Contract Exemption, (3) the proposed Prohibited Transaction Class Exemption ("PTCE") for Principal Transactions in debt securities, (4) PTCE 86-128, regarding the exclusion of advised IRAs (5) PTCE 84-24, regarding compensation for service providers (6) PTCE 75-1, Part V, regarding limiting relief to settlement failures in connection with short sales, options contracts, and other transactions (7) the additional exemption amendments related to "Class Exemptions" under ERISA and "the "proposal" under the Internal Revenue Code, and (8) the impact on asset management. The letters were accompanied by an executive summary and two studies, one of which focused on regulatory impact, the other, on operations.

SIFMA asserted, among other things, that the proposed regulation will harm investors by limiting access to financial guidance, reducing choice, and ultimately raising the cost of saving for retirement.

See: SIFMA Press Release.See also: SIFMA Comment Letters: "Executive Summary"; "The Fiduciary Rule Itself"; "Best Interest Contract Exemption (BIC Exemption)"; "Prohibited Transaction Class Exemption for Principal Transactions (PTCE) in Debt Securities"; "Prohibited Transaction Class Exemption (PTCE) 86-128"; "Prohibited Transaction Class Exemption (PTCE) 84-24"; "Prohibited Transaction Class Exemption (PTCE) 75-1, Part V"; "Additional Exemptions"; "Asset Management Group."