UBS UBS Financial Services Inc.
1200 Harbor Boulevard
Weehawken, NJ 07086

Tel. 201-352-3333
Fax 201-617-1140

Robert J. McCann,
CEO, Wealth Management Americas
robert.mccann@ubs.com

Www.ubs.coms

February 3, 2011

Office of Regulations and Interpretations
Employee Benefits Security Administration
Room N-5655

U.S. Department of Labor

200 Constitution Avenue, N.W.
Washington, D.C. 20210

Re: Definition of Fiduciary Proposed Rule

Ladies and Gentlemen:

| appreciate the opportunity to comment on the Department's proposed rule expanding
the definition of “fiduciary” under ERISA. | have attached a more detailed letter from our
general counsel, but wanted to share my personal views as well.

By way of background, | am the CEO of UBS Wealth Management Americas, part of
one of the largest wealth managers in the world.

While the Department's proposed rule is based on the best of intentions, | am
concerned that subjecting certain transactions and accounts to the prohibited transaction
provisions of ERISA will severely restrict the choices retirement investors now have with regard
to both the investments and types of accounts available to them. Furthermore, retirement
investors will either have to pay fees based on a percentage of their total assets or forego any
investment advice at all. The result would be a major step backwards for retirement investors.
They will almost certainly experience higher costs and poorer investment results.

| have always been a strong advocate for the proposition that broker-dealers must
adhere to the highest standards of professional conduct. | completely support the conclusion in
the SEC Staff's recent study that broker-dealers and investment advisers should be held to a
uniform standard of care requiring them to always act in the best interests of their clients.
However, the difficulty with attaching an ERISA fiduciary label to brokerage relationships is that
it automatically triggers prohibitions that will be extremely damaging to retirement account
holders, both in terms of their investment choices and their ability to be serviced through
commission-based accounts. That seems counter-productive, when the goal of subjecting firms
that provide advice to retirement plans to high standards of care can be achieved without
imposing such restrictions on retirement investors.

Throughout my almost 30 years in the financial services business, | have witnessed first-
hand that the vast majority of financial advisers are highly professional, knowledgeable, and
fully dedicated to helping clients meet their investment objectives. They make important
positive differences in their clients’ lives. The best advisers have played, and will continue to
play, an important role in helping investors navigate through both difficult and prosperous
economic times. Retirement investors are well served by these relationships and they, in seeking
to achieve their financial objectives, have provided trillions of investment dollars that help fuel

UBS Financial Services Inc. is a subsidiary of UBS AG.


Wealth UBS Financial Services Inc.
Management 1200 Harbor Boulevard

Weehawken, NJ 07086

Www.ubs.com

Office of Regulations and Interpretation
Employee Benefits Security Administration
February 3, 2011

Page 2 of 2

the engine of economic growth. | urge the Department not to adopt a rule that will
fundamentally restrict their opportunities and fundamentally restructure a relationship that has
served retirement investors so well.

Very truly yours,

Rotert V, Mele —

Robert J. McCann
CEO, Wealth Management Americas

UBS Financial Services Inc. is a subsidiary of UBS AG.