Industry Advocates: Fiduciary Proposal Unworkable on Broker Pay

Industry advocates on Wednesday aired their concerns about what they see as the limitations of the Department of Labor’s proposed fiduciary rule, suggesting that the language detailing the conditions under which conflicted business models could still operate as advisors to retirement accounts is “squishy” and far from business-model neutral.

Representatives for the Financial Services Institute and Kent Mason, a partner with Davis & Harman, took umbrage with the best interest contract exemption portion of the re-proposed rule, which would allow firms with business models that conflict with the standard to continue acting as advisors as long as they commit to acting in their client’s best interest and disclose any conflicts that may not allow them to do so.

Read more from WealthManagement here.

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