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	1994.		My	office	is	in	

Londonderry,	New	Hampshire.		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.1 And	with	retirement	savings	and	retirement	plan	participation	at	

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.	

About	four	years ago	 I	met	a	newly	married	couple	in	their	early	thirties	who	invited	me	to	help	

with	 their	 finances.	 	 The	 husband	 was	 a	 high	 school	 teacher	 and	 the	 wife	 was	 an	 office	

administrator	 for	a	 small	 business.	 	Additionally,	 the	 husband	worked	as	a	 bartender	 to	earn	

additional	income.		They	had	just	bought	a	condominium	and	had	one	child	with	the	desire	to	

have	another.		They	also	wanted	to	retire	and	wanted	more	information	about	how	to	better	

budget	 their	money.	They	had	 some	debt,	and	 the	wife	had	a	 small	amount	 saved	in	a	401k.		

Both	 had	 SIMPLE	IRAs	 provided	 by	 the	 small	 businesses	 where	 they	 worked.	 	Despite	 having	

these	options	 they	were	not	on	 track	 to	 reach	 their	 retirement	savings	goal.		They	had	never	

completed	a	retirement	calculation	and	were	blown	away	at	the	potential	to	reach	their	goal	if	

they	 made	 some	 changes.	 	 This	 education	 empowered	 them	 to	 make better	 decisions	 for	

themselves.	 	 They	 made	 some	 adjustments	 to	 their	 SIMPLE	 IRA	 savings.	 	 They	 also	 chose	 to	

each	open	IRAs	by	investing	$100	per	month.		The wife	also	chose	to	rollover	her	401k	savings	

because	she	wanted	more	investment	options	and	was	not	satisfied	with	 the	level	of	support	

her	employer’s	plan	offered.		She	valued	the	one-on-one	education	and	assistance	I	provided.		I	

periodically	check-in	with	them.		We	recently	met,	and	I	am	proud	to	say	they	did	not	need	to	

conduct	any	transactions	because	they	are	now	on	track	to	retire	at	67	based	on	their	current	

incomes.		They	also	 rent	 the	condo	where	we	initially	met	and	own	a	house.		They	are	doing	

well	financially.										

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.		

																																																												 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	

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

individuals.”
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,

Daniel	Campagna	

Londonderry,	New	Hampshire