The Securities Industry and Financial Markets Association (SIFMA) is among 17 trade associations that are requesting an extension of the 60-day comment period for the Department of Labor’s (DOL’s) proposed Retirement Security rule.
The proposed rule would change the definition of a fiduciary and require investment advice providers to “adhere to high standards of care and loyalty when they make investment recommendations, and to avoid recommendations that favor their own financial interests at the expense of retirement savers.”
The 17 organizations, in a letter to the DOL, said this proposal will require more time to analyze beyond the 60-day comment window.
“The Proposed Rule makes significant and unanticipated changes to the current regulatory framework that will require significantly more time for meaningful analysis and comment, and to understand how this proposal would impact access and choice for retirement savers,” the organizations wrote in the letter.
They noted that this comment period is shorter than similar proposals in 2010 and 2016. The groups said the DOL should provide at least a similar comment period, considering the proposal is nearly 500 pages long.
“DOL has only granted 39 workdays for interested parties to review and comment. An extension would benefit not only the commenters, but DOL itself. DOL should use comments as a resource, but providing too short of a comment period limits the possible benefits,” the letter continued. “Furthermore, DOL’s stated intention to hold a public hearing approximately 45 days after the Proposed Rule’s publication in the Federal Register effectively shortens the 60-day comment period for those who request to testify at the hearing because they will need to prepare their comments in time for the hearing. By setting the hearing date before the close of the comment period, DOL is communicating that this is merely a ‘check the box’ exercise, rather than an effort to receive helpful feedback. Holding the hearing after the end of the comment period would allow for DOL to ask questions about the comments.”
Along with SIFMA, the letter was signed by the Alternative & Direct Investment Securities Association; American Bankers Association; American Benefits Council; American Council of Life Insurers; Committee of Annuity Insurers; Financial Services Institute; Finseca; Indexed Annuity Leadership Council; Institute for Portfolio Alternatives; Insured Retirement Institute; Investment Company Institute; National Association for Fixed Annuities; National Association of Insurance and Financial Advisors; SPARK Institute; ERISA Industry Committee; ESOP Association; and the U.S. Chamber of Commerce.