Borzi: No Set Date for Fiduciary Rule
Speaking at a Washington legislative update meeting on May 5, Assistant Labor Secretary for the Employee Benefits Security Administration Phyllis Borzi said that while there is no set date for issuing the rule that will redefine fiduciary, she will not wait forever. Most insiders predict that the rule will not be released before the congressional elections in November. BNA’s report quotes Borzi as saying that she has slowed the process to accommodate further industry input.
Calling the retirement world way too complicated and lump sum DB payments a travesty and an example of the problem, Borzi said that individuals must act as their own advisor. She claims that adding a level of accountability is something that many people would agree on and that she was surprised by comments from some congressional leaders who said they don’t care what is charged for financial services. Critics of the proposed rule are concerned that it would limit access to financial professionals by lower income investors — the people who need it most.
The Department of Labor had said in the statement of priorities it issued late in 2013 that it planned to reissue its definition of fiduciary regulation in August 2014. Earlier this year, DOL Secretary Thomas Perez reiterated his agency’s commitment to that release and timing.
Fred Barstein is the Portal Conductor of the NAPA Service Providers station. He is also NAPA Net's Editor in Chief.