The Department of Labor's proposed conflict of interest rule is not the "appropriate way" to create a uniform standard of care for advisors to retirement investors, according to Robert Ketchum, CEO of the Financial Industry Regulatory Authority.
The DOL's proposal, which would establish a fiduciary standard of care for anyone advising a 401(k) plan or IRA account via so-called Best Interest Contract Exemptions, is well intended, said Ketchum in an address at FINRA's annual conference.
But those very contracts are wrought with "practical" concerns, namely that enforcement of the DOL's rule would be left to class action claims and arbitration hearings.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
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.