Washington, D.C. counsel Brad Campbell was featured in The FINANCIAL, InvestmentNews, Insurances News Net, ThinkAdvisor, Washington Bureau, The Hill, the Washington Examiner, and Employee Benefits News on the recent proposed fiduciary rule for financial advisers.
Brad authored a white paper, commissioned by the U.S. Chamber of Commerce, that discusses the potential compliance costs and increased legal liabilities resulting from the proposal. The white paper notes that the DOL exempted advisors to large retirement plans with more than 100 participants from mandatory compliance while requiring small plan advisors to comply. “It does not make sense that small business plans should have to absorb costs that large plans do not simply because of regulatory fiat,” Brad wrote. The white paper discussed the changes in compensation structures, legal risks, and necessary insurance coverages the rule would require of advisors to small plans, costs that likely will be passed on to plans and participants.
In response to questions about the next steps in the regulatory process, Brad said that the DOL “is going to have to make changes to get a rule that works in practice. The Department of Labor has had four years to write these rules and we're getting about 90 days to evaluate the most significant rewrite of these laws in the last 40 years."