Are regulations strict enough for brokers and advisors?

Three industry insiders give their views on this contentious issue.

Bill Kline, National practice leader, Retirement, Plan Consulting Team, Arthur J. Gallagher:
“We welcome the new rules. The DOL’s reports will bring greater clarity to services and fees. Many advisors and service providers already make it a priority to provide services and advice that are in the best interest of the client. These fi rms will not need to materially change their business model and related operating procedures. Some firms are not in such a position and will either revise their approach or exit the business. Ultimately, it will be up to each firm to demonstrate value. And as a result, plan sponsors and individuals should be able to build a deeper level of trust and confidence in our financial industry.”



Cathy Weatherford, President and CEO, Insured Retirement Institute:
“We support a best interest standard for financial professionals when recommending investment products, as we believe the vast majority of advisors already act in their clients’ best interest. Such a standard would not need to be unnecessarily burdensome to those already serving their clients appropriately, and more importantly, should not make it harder for savers to prepare for retirement. This was our main concern regarding the Department of Labor’s proposed rule. Throughout the rule-making process, we expressed concern the rule would harm those saving for retirement by limiting their access to advice and lifetime income products. We are still determining if our concerns were addressed.”




Jules O. Gaudreau Jr., President, National Association of Insurance, and Financial Advisors:
“It remains to be seen how the practical application of the rule will affect middlemarket consumers who need retirement planning advice and services. NAIFA will continue to provide training and education to help our members deal with the rule’s new requirements and restrictions. We will educate our members and use our grassroots advocacy strength to push for legislation that would best serve consumers. There is a retirement crisis brewing in our country with large swaths of the population fi nancially unprepared for the future. We need to fi nd a way to continue to provide advice and support for those who are trying to ensure the financial security of their families.”