As stakeholders set upon Washington this week for four days of exhaustive hearings on the Department of Labor's proposed fiduciary rule, several more Democrats raised formal concerns over the regulation's potential for unintended consequences.
In a letter to Labor Secretary Thomas Perez, Sen. Claire McCaskill (D-Mo.) applauded the department's efforts to create a universal best interest standard, but said there are still risks in the proposal.
As proposed, the rule would force most investors from a commission-based brokerage model to a fee-based advisory model, a more expensive option, McCaskill wrote, "and quite possibly unaffordable for holders of small accounts."
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
