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.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
