Senate, House Ranking Members to Trump Administration: Stop Efforts to Stall, Weaken Critical Protections for Retirees
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"Delay of the rule would result in considerable financial harm to retirees...[and] increases regulatory uncertainty for the industry, which has been diligently working to comply with the rule," wrote
In their letter to Secretary Acosta,
* In
* In
* Over the next two and a half years, the Department engaged in a thorough study of the industry, held meetings with stakeholders, and consulted with the
* In
* The Department issued a proposed fiduciary rule in
* On
* The rule became effective on
Full letter below and PDF can be found HERE https://www.help.senate.gov/imo/media/doc/Senate%20Dems%20Comments%20on%20Fiduciary%20RFI.pdf:
Suite 400
Re: Fiduciary Rule Request for Information (RIN 1210-AB82)
Dear Secretary Acosta:
We write today regarding the Request for Information ("
We strongly urge the Department not to delay the
We are concerned that the
We and thousands of others have already provided substantive comments many times throughout this process.[16] At this time, there is no new information to provide except with respect to innovations directly resulting from this rulemaking. We therefore encourage you to move forward as scheduled with the rule in its current form.
It is important that you fully understand the thorough analysis of the rule undertaken by the previous administration. What follows is a detailed account of this rule's robust examination. In this era of budgetary restraints, we hope this will save you from wasting any valuable resources conducting a redundant study.
In
In
On
This year,
On
As a reminder, the Department was not alone in thoroughly examining the rule during this seven-year period.
Additionally, there have been at least 17 bills introduced in the
The judiciary branch has also weighed in on the rule. Six lawsuits have been filed since the rule was finalized.[36] Although the lawsuits raise different issues with the rule, the courts to date have consistently held that the Department not only properly exercised its authority, but it also "adequately weighed the monetary and non-monetary costs on the industry of complying with the rules, against the benefits to consumers."[37]
As you can see, considerable resources have been spent already to ensure this rule was thoughtfully and carefully crafted and represents the viewpoints of all stakeholders. Other than seeking specific comments to justify a predetermined outcome, there is little chance that new evidence will be uncovered during this latest comment period, except with respect to innovations that are a direct result of the promulgation of this rule.
Throughout this regulatory process, one of the primary complaints has been the uncertainty surrounding the rule. The rule is now finalized, and there is clarity as to the parameters of the rule. Yet, by dragging out this process, you are now electing to move away from the clarity of a final rule and reintroducing uncertainty. This
Accordingly, in the best interests of the adviser industry and investors, we strongly urge the Department not to use this
Sincerely,
[15]
[16] The undersigned have collectively sent 7 comment letters regarding this rulemaking.
[17]
[18] See https://www.dol.gov/agencies/ebsa/laws-and-regulations/rules-and-regulations/public-comments/1210-AB32#comments.
[19] Id.
[20]
[21] The
[22] Definition of the Term "Fiduciary," 80 Fed. Reg. 21,928 (
[23]
[24]
[25]
[26]
[27] "
[28] Definition of the Term "Fiduciary;" Conflict of Interest Rule- Retirement Investment Advice, 81 Fed. Reg. 20,946 (
[29] Id.
[30] Presidential Memorandum on Fiduciary Duty Rule, 82 Fed. Reg. 9,675 (
[31]
[32] Id.
[33]
[34]
[35] This does not include hearings where the rule was discussed at length though it was not the stated topic of the hearing (i.e., DOL budget hearings).
[36]
[37]
Read this original document at: https://www.help.senate.gov/ranking/newsroom/press/senate-house-ranking-members-to-trump-administration-stop-efforts-to-stall-weaken-critical-protections-for-retirees
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