Dl Securities America

July 20, 2015

VIA EMAIL

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

RE: Definition of the Term “Fiduciary”; Conflict of Interest Rule — Retirement
Investment Advice (RIN 1210-AB32)

Ladies and Gentlemen:

Securities America, Inc. (SAI) is one of the nation’s largest independent broker-dealers
with more than 2,000 independent advisors and $55 billion in client assets. SAI is committed to
the task of providing the service, support and resources to empower its advisors to deliver quality
financial counsel and services to their clients. Therefore, SAI welcomes the opportunity to
comment on the proposed rule Definition of the Term “Fiduciary”; Conflict of Interest Rule—
Retirement Investment Advice; RIN 1210-AB32 (the “Proposal”).

In line with its mission to develop talented, thoughtful and diligent advisors, SAI would
be supportive of a carefully-crafted and uniform fiduciary standard applicable to all professionals
who provide personalized investment advice to retail clients. However, SAI believes that the
regulations defining such a standard should make it easier — and not harder - for investors to
receive high-quality, individualized investment advice from their trusted advisors.

After review of the Proposal, it is SAI’s opinion that the Proposal would unnecessarily _
restructure the securities industry, to the extent that it would become harder for advisors to
provide the counsel and services that their clients depend upon, In particular, SAI is concerned
that certain aspects of the Proposal (for example, the Best Interest Contract Exemption) would be
unworkable from a practical perspective and would generate exorbitant compliance costs that
inevitably would need to be passed on to investors. Another of SAI’s particular concerns is the
Proposal’s narrow definition of “investment education,” which would prohibit the discussion of
specific investment options with potential clients. This change would severely limit the ability of
advisors to illustrate the different options available. to prospective clients from an educational
perspective, and would result in the decline of investment knowledge among the public.

12325 Port Grace Blvd. « La Vista, NE 68128 « (402) 399-9111 » (800) 747-6111 « www.securltiesamerica.com
Securities America, Inc., member FINRA/SIPC. + Securities America Advisors, Inc., an SEC Registered Investment Advisory firm.


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July 20, 2015

The securities industry is already highly and effectively regulated by the SEC, FINRA
and state regulators. Moreover, the DOL has stated on several occasions that retail investors are
generally well-served by the securities industry. SAI believes that many of the concerns behind
the Proposal could be more simply and effectively addressed by improved disclosures to clients
regarding the different types of advice and services that are available to them. Among other
things, SAT would support an effort to increase disclosures to investors at the point of
engagement regarding the standard of care owed by the broker-dealer, the business relationship
between client and advisor, and the services to be provided by the advisor. In addition, SAI
would support expanded disclosure of additional details via the broker-dealer’s website, free
brochures, or other cost-effective delivery methods.

Thank you for including SAI’s comments in the rulemaking record. Should the
Department of Labor require any additional information, please contact Kevin J. Miller at 800-
747-6111 extension 1007.

Sincerely,
ee

Miller
Executive Vice President
General Counsel
Securities America, Inc.