SIFMA examined the DOL's final Conflict of Interest Rule and its "vast implications for retirement advice as well as next steps for operationalization and implementation by financial firms."
SIFMA President and CEO Kenneth E. Bentsen criticized the lack of clarity concerning "new prescriptions and mandates," particularly under the new Best Interest Contract Exemption. He asserted that this exemption "creates the potential for unlimited liability risk hanging over firms and advisers like the sword of Damocles as they seek to serve their clients." As a consequence, Mr. Bensten argued, firms could be forced to "alter product mixes" in order to comply with regulations and to limit litigation risk, even if doing so might not be in the best interests of the client. Mr. Bentsen urged the DOL, FINRA and other regulators that might "touch this new regulation" to provide clear guidance and specifications concerning what they intend, a step that he called the "sine qua non of the implementation process."
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
