Washington, D.C. counsel Brad Campbell was featured in The Hill, Think Advisor, and Employee Benefits News regarding the criticism President Obama is receiving for his proposed regulations for financial advisers.
July 21st was the last day for interested parties to submit a comment on the proposal; the Department of Labor (DOL) received over 500 comment letters and petitions regarding the proposal’s redraft. The Securities Industry and Financial Markets Association (SIFMA), U.S. Chamber of Commerce and Financial Industry Regulatory Authority (FINRA) were some of the larger players who submitted multiple comment letters denouncing the proposal, saying that the suggested regulations would make it more expensive for low- and middle-income Americans to obtain financial advice.
Brad spoke to the media on a conference call held by the Chamber of Commerce, and said that he is hopeful the administration will engage in “negotiated rule-making” with the industry in order to address any concerns. Brad said that while DOL intends its fiduciary rule to help IRA owners get better advice, “it undercuts all of those efforts; it will go the other direction and make it more difficult for IRA owners and small businesses to get advice. [The proposed regulation] is technically flawed. The way it has been proposed cannot work in practice; it conflicts with other securities regulation.”