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Pi David Scott Terri Sewell
e Member of Congress Member of Congress
David Wu
Member of Congress

CC: Director Jack Lew, Office of Management and Budget


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Rep. Joseph Growley, Chair

New Rep. Jim Himes, Vice-Chair
; Rep. Ron Kind, Vice-Chair
Democrat Rop. Rick Larsen, Vice-Chair

Coalition Rep. Allyson Schwartz, Vice-Chair

May 10, 2011
The Honorable Hilda Solis The Honorable Mary L. Schapiro
Secretary Chairman
U.S. Department of Labor Securities and Exchange Commission
200 Constitution Avenue, NW 100 F Street, NE
Washington, DC 20210 Washington, DC 20549
The Honorable Gary Gensler No
Chairman xo 2 =
U.S. Commodity Futures Trading Commission a u a =
1155 21" Street, NW “Ta OS
Washington DC 20581 S888 =
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Dear Secretary Solis and Chairmen Schapiro and Gensler: SS "pe

As members of the New Democrat Coalition, we are writing today with respect fo thes
Department of Labor’s proposal to redefine the term “fiduciary” for purposes of the Employee
Retirement Income Security Act of 1974 (“ERISA”) and for purposes of certain Internal

Revenue Code provisions affecting IRAs and similar arrangements.

During debate of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the
New Democrat Coalition played a critical role in advocating for an approach that would reduce
systemic risk and increase transparency and certainty in our markets. Given our work, we
understand and appreciate the Department’s desire to update the definition of a fiduciary in a
way that is broad enough to protect the interests of retirement plan participants and sponsors

seeking investment advice. While the proposed rule is intended to protect employee participants
and deceptive practices, we are concerned that it would have an

and plan sponsors from un
adverse effect; ultimately limiting access to investment education and information. This would

result in worse investment decisions by participants and would, in turn, increase the costs of
investment products, services, and advice that are absolutely critical parts of a sound investment

strategy for consumers.
We also feel strongly that these changes should be made in consultation and coordination

with all the relevant regulators to avoid duplicative or contradictory guidelines governing

investment in U.S. markets. A coordinated regulatory approach among the agencies will provide

clarity and certainty both to investors and to advisers.

Given the complexity and importance of this issue, over 200 written submissions have
been made regarding the proposed rule, in addition to those made at the Department’s public

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hearing. We understand the Department is considering modifications. In order to consider fully
these comments and to provide more transparency and certainty to the rulemaking process, we
urge the Department to provide the public with an opportunity to review these modifications

through a re-proposed rule.

We appreciate the Department's leadership on this issue. We look forward to working
with you in coordination with other agencies to create a balanced approach that protects plan
participants and sponsors while ensuring continued access to investment education, information,

and affordable investment products and services.

Sincerely,

C orotyn Mel flud-Wlt

Carolyn McCarthy Rush Holt
Member of Congress

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Ron Kind
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Russ Carnahan
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