PUBLIC SUBMISSION

As of: 7/21/15 

Received: July 20, 2015

Status: Pending_Post

Tracking No. 1jz-8k39-l697

Comments Due: July 21, 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-2010-0050-0205

Definition of Fiduciary; Conflict of Interest Rule-Retirement Investment Advice and Related 

Proposed Prohibited Transaction Exemptions; Hearing and Comment Period Extension

Document: EBSA-2010-0050-DRAFT-2561

Comment on FR Doc # 2015-14921

Submitter Information

Name: Jennifer Knoll

Address: 

Sparta Dental Center

3000 Riley Road

Sparta, WI, 54656

Email: jknolldds@charter.net

Phone: 608-269-5282

General Comment

I am a small business owner who is very concerned about the U.S. Department of Labors 

Conflict of Interest rule as currently drafted.

Through SEP and SIMPLE IRAs, I and my employees have accumulated significant retirement 

savings. The proposed rule threatens the continued success of these plans and the ability of small 

businesses, like mine, to provide retirement security.

The DOL proposal will make it harder to provide retirement plans to small businesses. The 

broadened definition of investment advice includes sales communications, some educational 

materials and other situations where no intention to provide individualized fiduciary advice has 

been expected. However, my understanding is that the proposal carves out large plan advisors 

from this definition. If a plan has 100 or more participants, or $100 million or more in plan 
assets, the advisor to that large plan does not have to be a fiduciary! Because an advisor to a 

small plan is not carved out of the rule, the advisor who is trying to market retirement saving 

options to a small plan is considered to be providing investment advice and must comply with 

the rule which is likely to increase costs that will be passed on to the consumer. Advisors to large 

plans are not burdened with these additional hurdles. And some advisors to small plans may stop 

servicing them if they determine that the expense and risk is not justified. 

Because advisors to small businesses are not carved out of the investment advice definition, they 

must either change their fee arrangements or qualify for a special rule called an exemption in 

order to provide services on the same terms as before. The new exemption does apply to 

individual owners of IRAs, but it is not clear whether this exemption is available for employeroffered SEP and SIMPLE IRAs. Even if the Best Interest Contract Exemption does apply, it 

would itself substantially increase costs for advisors due to its many conditions and requirements 

and, again, those costs are likely to be passed onto the consumers.

Under the proposed rule, small business SEP and SIMPLE IRA arrangements will become more 

expensive to serve, meaning that many small businesses will ultimately lose access to their 

advisors. I fear the DOLs proposed regulations will harm the very small businesses and workers 

they are intended to protect and urge the DOL to address these concerns.