From: Wilson, Rebecca [mailto:Rebecca.Wilson@axa.us.com] 

Sent: Thursday, July 16, 2015 9:01 AM

To: EBSA, E-ORI - EBSA; Talk to DOL

Subject: ERISA definition of fiduciary 

I sent the following letter to Representative Charlie Rangel through his web site:

Dear Representative Rangel:

I am writing to express my informed and educated opinion that the Department of Labor’s April 

14, 2015 proposal to change the ERISA definition of fiduciary will cause considerable damage to the 

retirement security of millions of Americans.

If implemented as drafted, this proposal will dramatically reduce the availability of 

comprehensive, personalized retirement and investment education and advice for millions of low and 

middle-income savers and retirees. These concerns are founded on my practice as a licensed and 

registered financial professional with years of experience helping my clients plan for a comfortable and 

secure retirement.

The Department’s objective, which I share, is to ensure that retirement plan participants, 

individual retirement account investors, and their families have ongoing access to high quality 

retirement savings advice delivered by professional financial and investment advisers in accordance with 

sound, ethical business practices.

However, the practical consequence of the proposal will be to drive up the costs of providing 

advice, due to the substantial redundant compliance requirements and heightened potential litigation 

risks. In particular, due to the overly narrow investment education exception and withdrawal of the 

traditional seller’s exemption, individuals with more modest account balances, including many younger 

investors who stand to benefit the most from receiving professional retirement and investment advice 

at an early age, may likely be excluded entirely from receiving full-service investment advice.

A recent Insured Retirement Institute study, “Boomer Expectations for Retirement 2015,” 

highlights the vital role of professional investment advice in effective retirement planning for all 

segments of society, including women and minorities. Should the proposed rules go into effect as 

currently drafted, the conclusions of a 2011 report by Oliver Wyman Inc. still apply: over seven million 

retirement plan investors with modest account balances will be at substantial risk of being dropped by 

their current investment advisers and/or forced into low-service accounts with no access to meaningful 

and individually tailored investment advice. 

Accordingly, I strongly believe the proposal should be modified to address the above concerns 

by:

• Restoring the traditional seller’s exemption; 

• Expanding the investment education exception; and

• Harmonizing the ERISA fiduciary standard with the existing, robust SEC investment 

advisory fiduciary standard.

Thank you for your consideration.

Respectfully, 
cc: The Honorable Thomas E. Perez

Secretary

U.S. Department of Labor

200 Constitution Avenue, NW

Washington, DC 20210

talktodol@dol.gov

Rebecca Wilson

AXA

Lead Manager, Brand Strategy

1290 Avenue of the Americas

New York, NY 10104

t: 212.314.2966

e: Rebecca.Wilson@axa.us.com

w: axa.com

 

 

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