At MCS, we often talk about the fiduciary standard and how important we feel it is to act in your best interests. Many of you hired us because you realize the importance of a fiduciary relationship. You know that one of our core values is to do business is fairly and transparently.
Until September 24, the DOL is taking final comments on a new rule that would require nearly all financial advisors1 to adhere to the fiduciary standard when providing advice on retirement plans or IRA rollovers. The DOL has estimated that consumers lose up to $17 billion a year to conflicted advice, and the proposed rule is meant to lower this number. The commission‐based financial industry associations are lobbying hard to stop the DOL from releasing the rule. In fact, industry groups who oppose the fiduciary rule are outspending supporters of the rule by nearly 10‐1 (see box)!
If you support the fiduciary standard, I encourage you to contact your congressional representatives and the DOL to support the fiduciary standard. An easy way to do it is by going here:
http://saveourretirement.com Click on the “Take Action” link and fill in your name and contact information (so the website knows which senators and representatives to contact).
2015 Lobbying Spending: Supporters and Opponents of the DOL Proposal
| Name | Supporter | Opponent | |
|---|---|---|---|
| Securities Industry and Financial Markets Association | $3,720,000 | ||
| American Council of Life Insurers | $2,520,000 | ||
| Investment Company Institute | $2,470,000 | ||
| National Association of Insurance and Financial Advisors | $1,360,000 | ||
| Financial Services Institute | $428,876 | ||
| Financial Industry Regulatory Authority | $420,000 | ||
| Insured Retirement Institute | $160,000 | ||
| American Association of Retired Persons* | $1,000,000 | ||
| Investment Adviser Association | $90,000 | ||
| Consumer Federation of America | $40,000 | ||
| Financial Planning Coalition | $20,000 | ||
| Financial Planning Association | $15,000 | ||
| $1,165,000 | $11,078,876 | ||
| *Note: Estimate. The total AARP spending in 2015 is $3,750,000, but the DOL rule is one of many issues they support with their lobbying efforts. | |||
Source: Office of the clerk, U.S. House of Representatives
1 There are narrow exemptions from the rule.