Industry Groups Warn DOL Against Picking ‘Winners and Losers’
October 12, 2017 by Cyril Tuohy
Regulators should remove their “clear bias” toward fee-based products and stay away from picking “winners and losers,” as they seek to amend key parts of the Department of Labor’s fiduciary rule, industry groups say.
The DOL’s preference for “clean (fund) shares” and fee-based annuities shows the DOL is more interested in developing fee-for-service models and “a la carte type” menu schedules charging specific fees for every service, wrote James H. Szostek and Howard M. Bard of the American Council of Life Insurers.
“The Department must abandon its experiment with picking winners and losers and instead provide clear rules that apply to any and all fiduciaries seeking exemptive relief for the receipt of otherwise prohibited compensation,” the pair added in comments to the Employee Benefits Security Administration.