From: Spencer Palmer [mailto:spencer_palmer@glic.com] 

Sent: Tuesday, July 21, 2015 6:00 PM

To: EBSA, E-ORI - EBSA

Subject: RIN 1210-AB31 

To Whom It May Concern:

Thank you for seeking practical input on how to develop a best interest standard. I'm 

concerned that the current proposal is unworkable. The proposal contains provisions that will 

have the unintended consequence of leaving many retirement savers without access to 

professional education, advice and services.

American investors need reliable education, affordable retirement advice and clear and easily 

understood disclosure. 

Unfortunately, the current draft: 

- Prohibits an advisor from providing advice to plan sponsors under a commission 

arrangement - meaning that the employer must pay using a fee-for-service arrangement.

- Narrowly defines investment education, which will limit the assistance advisors can provide 

without triggering fiduciary obligations.

- Does not allow advisors to receive third party compensation when advising plan participants 

on distribution options.

- Creates an inoperable Best Interest Contract Exemption (BIC) - a new exemption that would 

allow otherwise prohibited compensation such as commissions and 12b-1 fees, but is 

complicated, confusing to consumers, costly and in some respects, impossible to comply with.

- Limits third party for variable annuities and fixed annuities with different rules depending 

upon whether in an IRA or in other qualified plans.

In order to make the proposal workable for savers and retirees, I urge the Department to 

make the following changes: 

- Permit third party compensation models when working with businesses that sponsor 

retirement savings plans.

- Broaden the education provision, especially with respect to the timing of an advice 

conversation proceeding to the mention of specific investment products. Advisors and 

consumers must be able to discuss together specific investment choices prior to the point at 

which a recommendation is made and a specific choice is contemplated.

- Clarify BIC exemption language to encompass advice on plan distributions and rollovers. It 

must be clear that advice in these situations can be compensated by commissions, 12b-1 fees, 

and fee sharing if the terms of the BIC exemption are satisfied. 

- Simplify the contract requirements and eliminate the burdensome data retention and 

cumulative disclosure requirements. The contract should be executable once a full review of 

the client's circumstances, goals, objectives and financial options has been discussed and a 

decision has been made as to a course of action.

-Resolve the conflict between the rules in its BIC PTE proposal and SEC/FINRA rules, address 

the parties-in-interest/self-dealing rule issues that particularly impact fixed and variable 
annuities, explicitly allow proprietary products, and captive as compared to independent 

advisors.

I urge the Department of Labor to re-write this unworkable rule to achieve our mutual goal of 

an effective best interest standard that will retain access to affordable professional advice.

Many thanks,

-spencer

Spencer N. Palmer

6700 Old Canton Rd. Ste B 

P.O. Box 628

Ridgeland, MS 39158

601-977-9911 office 

601-977-8487 fax 

spencer_palmer@glic.com

Registered Representative of Park Avenue Securities LLC (PAS), 5898 Ridgewood Rd, Suite A, 

Jackson, MS 39211, (601) 956-6656. Securities products and services are offered through PAS a 

registered broker-dealer and investment advisor 1-888-600-4667. Financial Representative, The 

Guardian Life Insurance Company of America(Guardian) New York NY. PAS is an indirect wholly 

owned subsidiary of Guardian. 

PAS is a member FINRA, SIPC.

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