PUBLIC SUBMISSION

As of: 6/24/15 9:35 PM

Received: June 19, 2015

Status: Pending_Post

Tracking No. 1jz-8jin-s4t7

Comments Due: July 06, 2015

Submission Type: Web

Docket: EBSA-2010-0050

Definition of the Term ‘‘Fiduciary’’; Conflict of Interest Rule—Retirement Investment Advice; 

Notice of proposed rulemaking and withdrawal of previous proposed rule.

Comment On: EBSA-2010-0050-0204

Definition of the Term Fiduciary; Conflict of Interest Rule-Retirement Investment Advice

Document: EBSA-2010-0050-DRAFT-0321

Comment on FR Doc # 2015-08831

Submitter Information

Name: j butler

Address: 

2555 E Calumet St

Appleton, 54915

Phone: 9207342555

General Comment

Specific Points 

1. Support for a Carefully-Crafted, Universal Fiduciary Standard

There should be a uniform fiduciary standard of care applicable to all

professionals providing personalized investment advice to retail clients.

A uniform standard of care should consist of the following:

A professional should act in the best interest of the customer

without regard to the financial or other interest of the broker,

dealer, or investment advisor providing the advice;

A professional should provide advice with skill, care, and

diligence based upon information that is known, or should be

known, about the customers investment objectives, risk

tolerance, financial situation, and other needs; and

A professional should disclose material conflicts of interest,

avoid them when possible, and obtain informed customer

consent to act when such conflicts cannot be reasonably

avoided.

2. Any regulation is this space should make it easier for investors to receive highquality,

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individualized investment advice from a trusted advisor, not harder.

Investment services for retirement savers with small account balances

will likely become cost prohibitive because of increased compliance

costs and the likely alterations to the independent broker-dealer fee

model.

The changes to what would and would not be considered investment

education will likely curtail the effectiveness of investor education

outreach with regards to plan participants and IRA owners.

o The inclusion of decumulation in investment education is

commendable, but the prohibition on stating specific

investments in educational pieces will lead to investors having

less knowledge regarding investment options.

Robo-advisors and other emerging technology platforms can

provide asset allocation, portfolio rebalancing, or risk tolerance

advice at a modest price point, but they cannot provide the life

events/financial planning services that bring employers and

participants into the retirement savings system and keep them in the

system during fluctuations in the market. This is especially true for

investors nearing or already in retirement that need professional

financial advisors to assist them with decisions related to estate and

tax planning, making their retirement assets last, medical concerns,

major life changes, hospice care, etc.

3. Improved disclosures would address many of DOLs concerns that have led to

the proposal

Investors can make better choices when they are properly informed of

the differences between the advice and services being offered. In

order to provide investors with the information that they need,

investors should receive concise, consolidated disclosure documents

written in plain English.

The following two-tiered disclosure approach would be beneficial to

investors:

oA short-form document focused on the issues that are of

greatest importance to investors that would be provided in

electronic format at the point of engagement. The document

would include:

The standard of care owed by the broker-dealer to

each client;

The nature and scope of the business relationship

between the parties, the services to be provided, and

the duration of the engagement;

A general description of any material conflicts of

interest that may exist between the broker-dealer and

the investor;

An explanation of the investors obligation to provide

the broker-dealer with information regarding the

investors age, other investments, financial situation and

needs, tax status, investment objectives, investment

experience, investment time horizon, liquidity needs, risk 

tolerance, and any other information the customer may

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disclose;

An explanation of the investors obligation to inform the

broker-dealer of any changes in the above

information;

A phone number and/or email address the investor can

use to contact the broker-dealer regarding any

concerns about the advice or service they have

received; and

A description of the means by which a customer can

obtain more detailed information regarding these

issues free of charge.

o Expanded disclosure that would provide investors with access

to full details via the broker-dealers website or brochures to

be provided free of cost. Utilizing hyperlinks and other

internet functionality, investors would be able to access the

following information in areas where they desire additional

detail:

A detailed schedule of typical fees and service

charges;

The specific details of all arrangement in which the firm

receives an economic benefit for providing a particular

product, investment strategy, or service to a customer;

and

Other information necessary to disclose material

conflicts of interest.

4. The proposal would unnecessarily restructure the securities, insurance, and

banking industries

Our industry is highly and effectively regulated by the SEC, FINRA,

and state regulators.

5. The costs related to the proposals implementation are severely understated.

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