STOCKBROKERLAWYER.COM

16133 VENTURA BOULEVARD, PENTHOUSE SUITE
ENCINO, CALIFORNIA 91436-2447

(888) 986-9010 oR (818) 986-7100
FAX (818) 986-7106

July 20, 2015

U.S. Department of Labor

Office of Regulations and Interpretations
Attention: Conflict of Interest Rule

200 Constitution Avenue NW
Washington, D.C. 20210

Re: Proposed Rule affecting Defining Fiduciary
RIN 1210-AB32

Dear Secretary of Labor Perez;

I write in favor of the Department of Labor protecting all working Americans saving for
retirement, by closing the loophole permitting some stockbrokers from always acting in the best
interests of their customers, as fiduciaries. After more than twenty years of legal practice as an
attorney, helping people to recover investment losses, often for retirees, I have seen many people
who relied on their stockbrokers for all investment advice. Many of these people are hard
working but not financially sophisticated or even financially knowledgeable. Too many times,
stockbrokers made recommendations that did not take into account the worker’s real investment
goals and objectives, but instead had high fees and costs to the brokerage firm. Almost always,
people trust their stockbrokers, believing that the person they are dealing with, and the
stockbrokerage firm employing that person, always have the customer’s best interests in mind.
American investors in the areas that this rule would affect deserve to have a legal standard that is
in-line with their expectations, and the adverting and promotion of brokerage firms.

These many Americans count on their retirement accounts and 401(k) accounts for a secure
financial future -- and have worked hard to build and grow our savings. Many of the most
vulnerable workers became investors because their large employers, such as AT&T, Verizon,
GM and other corporate employers, offered pension buy-outs, suddenly placing large amounts
under the worker’s investment account, instead of a long term pension.

These plans involve complex financial decisions, and many use investment professionals for
guidance. People should be able to trust financial advisers to their interests first. But loopholes
in the current rules make it easy for some advisers to take advantage of hard-working Americans
resulting in fees that are too high, and even too-risky recommendations. This loophole
unreasonably and unnecessarily puts the secure retirements of regular working people at too


much risk.

Financial advisers should be working in the customer’s best interest. It's time to close this
loophole and ensure a high standard that holds anyone who gives financial advice genuinely
accountable for helping everyday Americans choose the best retirement investments for us, our
families, and our future -- not just the ones that make our brokers and bankers richer.

A good rule will ensure that all financial professionals who offer retirement investment advice
must make recommendations designed to serve the best interests of consumers by keeping costs
low, recommending sound investments, and protecting retirement nest eggs from unnecessary
risks. All costs, fees, and compensation to the brokerage firm and stockbroker should be
disclosed, in an easy to understand, standardized way. Disclosure and clarity are a minimum of
what a customer deserves from a firm giving such important financial advice.

DOL should close the loophole now. Americans who've worked hard to save for retirement
deserve peace of mind about their financial security. The investment industry, while spending
hundreds of millions of dollars in advertising to encourage people to trust and rely on a
stockbroker’s advice, should at least follow the rule that the advice must be in the best interests
of the customer, not just the brokerage firm. I thank the Department for taking action on such an
important rule of fairness, that affects so many people, and its other important efforts.

Sincerely,

seph S. Fogel