July 20th, 2015

U.S. Department of Labor 

Office of Regulations and Interpretations

Employee Benefits Security Administration

200 Constitution Avenue, NW

Washington, DC 20210 

Re: Definition of the Term “Fiduciary”; Conflict of Interest Rule—Retirement Investment Advice 

(RIN 1210-AB32)

Ladies and Gentlemen: 

Thank you for the opportunity to provide comments regarding the Department of Labor’s 

(“Department”) Proposed Conflict of Interest Rule (“Proposed Rule”) and Best Interest Contract 

Exemption (“BIC Exemption”) under the Employee Retirement Income Security Act of 1974, as 

amended (“ERISA”). I am concerned that the Proposed Rule and BIC Exemption will 

unnecessarily increase barriers for Middle-Income Americans to the valuable retirement savings 

education and assistance that I and many thousands of other registered representatives 

provide. It is my hope that my comments are helpful to the Department. 

I have been a registered representative with PFS Investments Inc. since 1996. My office is in 

Blue Springs, Missouri. My clients come from the community in which I live and work. They are 

hard-working, very busy people, and, quite typically, before they meet me, no one has ever 

taken the time to sit down with them to assess their financial picture and discuss basic financial 

concepts with them, such as the power of saving for retirement through systematic investing 

and what investment options are available to them. They, like so many people in Middle 

America, do what they do daily very well, but the reality of life is that there is no time left in the 

day after their work day and evening family commitments end for them to proactively seek out 

education and advice on saving and investing. What some view as basic saving and investing 

concepts that everyone already knows, is typically not information they know. They are 

starting from a different baseline, and it takes a substantial time commitment to understand 

these concepts well enough to make actual investment decisions independently. 

While it may appear that they have access to this information if they have computers or other 

mobile devices from which they can search the internet, they do not, in my experience, access

this information on their own. It is time-consuming and overwhelming. They are much more 

comfortable working with a live person, and more successful when they do so, both of which 

studies have demonstrated.1And with retirement savings and retirement plan participation at 

 

1

Oliver Wyman: The role of financial advisors in the US retirement market (July 6, 2015). Oliver Wyman states that 

it “. . . was engaged to perform a rigorous investigation of the role of financial advisors in the US retirement 
such low levels, it is imperative that we help Middle-Income Americans in every way possible 

get on track toward ensuring better futures for themselves and their families. 

Working with Middle-Income Americans to achieve their financial goals is what I have done my 

entire career in the financial services industry. A story about a particular client of mine comes 

to mind. 

Fifteen years ago I met a married couple who had two small IRA accounts. The husband was a 

manager at a local retail store and the wife was a hair dresser. They were in their late 40s or 

early 50s, and their IRAs each had about $10,000 conservatively invested. I provided a financial 

needs analysis, and they chose to rollover their IRAs because they saw the benefit of working 

with a licensed financial representative like me. They wanted the education and guidance that I 

could provide them to help them better understand their investment options. Today, there is 

now well over $100,000 in the account, and the client is debt free, including the mortgage, 

because of the guidance I provided. Unfortunately, the wife now has onset Alzheimer’s, but 

she and her husband frequently visit my office just to say “hi.” Her husband has thanked me for 

the help I provided and informed me they are better off financially because of our relationship. 

Main street families need the opportunity to have the human touch I provide. 

It is my belief that the Proposed Rule and the BIC Exemption as drafted will eliminate or 

substantially reduce people like this couple’s access to education and advice, at the exact time 

and for the exact purpose they need it most – saving for retirement. I fear that the translation 

of education into advice, the imposition of the new BIC contract, the uncertainties created by 

the Impartial Conduct Standards which substantially increase liability costs and effectively 

disqualify the commission model, and the costs of complying with all of the many disclosure 

requirements will cause firms such as PFS Investments Inc. to conclude that it simply is not 

feasible to open smaller accounts. If a decision like this is made, my clients will lose access to 

the education and advice they so badly need, and their futures will be severely negatively 

impacted as a result. 

It is my hope that the Department will take this into consideration and withdraw the Proposed 

Rule. Thank you again for the opportunity to comment.

Sincerely,

Jodie Orel

Blue Springs, Missouri

 

market, and quantify differences in investing behavior and outcomes between advised and non-advised 

individuals.”