Updated Thursday, March 5, 2015 as of 5:27 PM ET

Will Fiduciary Rule Lead to Billions in Retirement Cash-Outs?

WASHINGTON – If the Department of Labor moves ahead with its proposal to impose a fiduciary responsibility on financial professionals offering retirement advice, waves of broker-dealers and company call centers would exit that market and further jeopardize the already precarious retirement situation for millions of workers, a new study has found.

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Comments (3)
If this article and or the study were introduced into evidence, the court would rule it inadmissible as purely speculative. The "additional costs" ruse and the other disingenuous arguments put forth by the anti-universal fiduciary standard just proves what Aesop said - "A tyrant will always find a pretext for his tyranny."
Posted by James W | Friday, April 18 2014 at 11:21AM ET
What is your solution James W.? Who do you want to advise your parents on their retirement? The government, the 401K adminstrator, or a sound advisor who is well respected and has a large book and many clients and their families well served?

The new proposal punishes the 99.99% of advisors who have ethical practices. This is a classic case of throwing out the baby with the bathwater, and in the end, it is simply a money-grab by the government. Follow the money. This ends the IRA as we know it. Exactly what they want to happen. And you sir, are their tool.
Posted by Lee M | Monday, February 23 2015 at 5:18PM ET
The "study" is laughable. There is no way advisors are going to leave the market. The rule would just make it harder for brokers to rollover assets into IRAs without disclosing, which they love to do.

I've seen folk get their funds rolled over to an IRA and come out worst on fees/expenses then being in the 401k, 403(b), etc... The brokers know this. However, they use the phrase "you'll have more investment choices" as a way of convincing someone who doesn't know the difference between an individual stock versus a mutual fund that they need more choice. Thus the raise of the brokerage window.

Many corporate retirement plans will have a brokerage window. However, most brokers cannot get a commission on advising clients within a brokerage window. Thus the rollover. Rules are a coming, and they are needed before the next market downturn.

Note: The AIF designation will become standard for someone working with large scaled plans.
Posted by Tony R | Tuesday, February 24 2015 at 3:34PM ET
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