Robert W. Baird & Co.

777 East Wisconsin Avenue

Milwaukee WI 53202-5391

Main 414 765-3758

Toll Free 800 792-2473

Fax 414 765-3912

www.rwbaird.com

July 21, 2015

By U.S. Mail and Email: e-ORI@dol.gov

Subject: RIN 1210-AB32

Office of Regulations and Interpretations

Employee Benefits Security Administration

Attn: Conflicts of Interest Rule

Room N-5655

U.S. Department of Labor

200 Constitution Avenue, N.W.

Washington, D.C. 20210

Dear Ladies and Gentlemen:

Robert W. Baird & Co. Incorporated (“Baird”) submits this comment letter regarding the regulation 

proposed by the Department of Labor (the “Department”) that would redefine the term “fiduciary” 

under section 3(21) of Employee Retirement Income Security Act of 1974, as amended (“ERISA”),

and section 4975(e) of the Internal Revenue Code of 1986, as amended (the “Code”), and the related 

Prohibited Transaction Exemptions proposed by the Department. We appreciate the opportunity to 

comment on these significant proposals. 

Baird is an employee-owned, wealth management, capital markets, private equity and asset management 

firm established in 1919. As a registered investment adviser and broker-dealer, we provide a wide 

range of advisory and brokerage services to our individual and institutional clients, including their 

retirement plans and individual retirement accounts. We have substantial experience assisting clients 

with their retirement savings and understand the challenges they face in saving for retirement.

We support the comments submitted by the Securities Industry and Financial Markets Association

(“SIFMA”) regarding the Department’s proposals. We share SIFMA’s concern that, if the proposals 

are enacted, investors will be adversely affected and it will be harder for them to save for retirement. 

We note that the proposals would prohibit some investors from making certain types of investments in 

their retirement accounts even though those investments may in fact be in their best interest. In 

addition, the proposals could have a chilling effect on the education and advice being provided to 

investors about their retirement accounts, such that only the lowest cost alternative will ever be 

recommended—even though another investment option may have superior cost-adjusted performance. 

This would ultimately depress the growth of investors’ retirement savings. 

Finally, the cost of complying with the proposed regulations will be considerable for financial services 

firms, particularly smaller and regional broker-dealers. Firms may be forced to pass this cost on to 

investors through higher fees, further making it harder for investors to save for retirement. 

Alternatively, firms may decide to avoid the cost of compliance completely by reducing or eliminating 

the brokerage services they currently offer. The result may be that firms cease providing education or 

advice in connection with the execution of transactions for retirement accounts, or they may only offer 

investment advisory services to retirement accounts, forcing investors to buy services they may not 
U.S. Department of Labor

July 21, 2015

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want or need, likely at a higher cost. Of particular concern is that many investors will not meet firmestablished eligibility requirements for obtaining investment advisory services, such as account 

minimums, which may be $25,000 or more, leaving those investors with fewer options for obtaining 

advice. Middle class and lower income investors, groups that vitally need to save for a secure 

retirement, would suffer the most.

We understand and appreciate the Department’s desire to help investors save for their retirement. 

However, if enacted, we believe the proposals will in fact have the opposite effect. We hope the 

Department considers our comments and those of SIFMA as the Department proceeds with its rulemaking efforts.

Very truly yours,

ROBERT W. BAIRD & CO. INCORPORATED

Paul E. Purcell

Chairman and Chief Executive Officer

Steven G. Booth

President and Chief Operating Officer

Michael J. Schroeder

President–Private Wealth Management

Paul L. Schultz

Secretary and General Counsel