NAGDCA Weighs in on Securities and Exchange Commission’s Proposed Fiduciary Rules

We previously have reported on the evolution of the Department of Labor’s (DOL) Fiduciary Rule, widely considered among the most important consumer protection changes in recent history.  In March, the Fifth Circuit Court of Appeals ruled 2-1 that the DOL had exceeded its authority when issuing the fiduciary regulations, which stopped the rules protecting an investor’s best interests from being implemented.  In the meantime, the Securities and Exchange Commission (SEC) has released proposed rules addressing the best interest requirements found in the DOL proposed rules.

NAGDCA has written a letter to the Secretary of the SEC, identifying a number of questions and grey areas that the proposed rules create.  Specifically, the letter asks the SEC to clarify:

  • How will the “Regulation Best Interest” language apply to DC plans and participants?
  • Who is a retail customer and who is a legal representative?
  • What is a recommendation in the context of DC plans and participants?
  • Will the Client Relationship Summary (Form CRS) be required for DC plans and participants?
  • How will Regulation Best Interest apply to rollovers?

Read the full text of NAGDCA’s letter to the SEC.

ACR#296490 09/18