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TOT BROKERAGE

Office of Regulations and Interpretations
Employee Benefits Security Administration
Attn: Conflict of Interest Rule, Room N-5655
U.S. Department of Labor

200 Constitution Avenue NW

Washington, DC 20210

Subject: RIN 1210-AB32

Ladies and Gentlemen:

Ash Brokerage Corporation (“Ash Brokerage”) is pleased to comment on the U.S. Department of
Labor’s (the “Department”) proposal regarding the Definition of Term “Fiduciary”; Conflict of
Interest Rule — Retirement Investment Advice! (the “Proposal”).

Ash Brokerage has been actively engaged in business since its inception in 1971. We are an
insurance Brokerage General Agency (“BGA”) that conducts business with independent agents,
national and regional broker-dealers through their registered representatives, and duly licensed
registered investment advisors. Ash Brokerage is one of the largest independently owned firms
helping Americans with their retirement income strategies throughout the United States. In 2014
alone, our firm assisted agents and financial advisors with more than 30,000 American families.
Based on our knowledge and experience as a BGA, we believe that we are well positioned to
comment on the Proposal.

We respectfully request that the Department expand the availability of the “seller’s exemption”
described in the Proposal (i.e., the carve-out for “statements or recommendations made to a
‘large plan investor with financial expertise’ by a counterparty acting in an arm’s length
transaction”).

As currently proposed, the “seller’s exemption” is only available when investment advice is
provided to (1) the employee benefit plan has 100 or more participants, or (2) the plan fiduciary
has responsibility for managing at least $100 million in employee benefit plan assets.

We believe the “seller’s exemption” should be expanded so that it is available for an Individual
Retirement Account (“IRA”) and owners of IRA that meet certain economic thresholds. For
example, we respectfully request the Department consider whether the “seller’s exemption”
should be available when an IRA holds a specified dollar amount of assets (e.g., $1 million or
more) or when the IRA owner can satisfy certain tests that demonstrate he or she has “financial
expertise” (e.g., the IRA owner satisfies the definition of an “accredited investor”).

' Dep’T OF LABOR, EMPLOYEE BENEFITS SECURITY ADMIN., Definition of Term “Fiduciary”; Conflict of Interest
Rule — Retirement Investment Advice, [RIN: 1210-AB32], 80 Federal Register 21928 (April 20, 2015), available at
http://www. gpo.gov/fdsys/pkg/FR-2015-04-20/pdf/2015-0883 1.pdf.
7609 West Jefferson Boulevard
Fort Wayne, IN 46804
(800) 589-3000
(260) 478-0600

THE PRACTICE ENHANCEMENT COMPANY” www.ashbrokerage.com


® ASH

aT OUTS BROKERAGE

We respectfully request that the Department work with the insurance industry to provide a
workable and meaningful seller’s exception for client engagements that require a suitable,
transactional investment solution. We also respectfully request that the Department coordinate
the regulatory environment for financial professionals with existing regulatory bodies to provide
clarity, vision, and direction.

Sincerely,

Michael J. McGlothlin, ChFC, CLU, CFP

Executive Vice President, Annuities

Ash Brokerage Corporation

7609 W. Jefferson Blvd. -

Fort Wayne, IN 46804
260-434-9710

7609 West Jefferson Boulevard
Fort Wayne, IN 46804

(800) 589-3000

(260) 478-0600

THE PRACTICE ENHANCEMENT COMPANYTM www.ashbrokerage.com