Options Clearing Corporation Suggests Revisions to New DOL Proposed Regs

In a letter to the DOL, the Options Clearing Corporation ("OCC") suggested revisions to the DOL's Fiduciary/Conflict of Interest Rule Proposal and the Best Interest of the Customer Exemption Proposal ("BIC").

The OCC recommended that the final version of the Fiduciary Rule clarify that "neither the screening by a broker of the owner of a self-directed IRA account, nor the determination by a broker that engaging in listed option trading is appropriate for such account owner, by itself, constitutes a recommendation as to management of plan investments." The OCC recommended that the definition of "Asset" be revised in the final version of the BIC rule to eliminate the exclusion of exchange-traded options.

Finally, the OCC recommended that the Final Regulation clarify that the provision of instructional models, videos and interactive materials regarding listed option trading qualifies for the investment education carve-out to the definition of investment advice.

Related news: Democratic Senators Highlight Costs of DOL Fiduciary Proposal (with Lofchie Comment) (August 7, 2015); ICI Recommends That DOL Revisit the Best Interest Standard in Its Proposed Fiduciary Rule (with Lofchie Comment) (July 24, 2015); SEC Commissioner Gallagher Attacks DOL's Fiduciary Proposal (with Lofchie Comment) (July 22, 2015).