WASHINGTON (April 6, 2016) – The following is a statement from Judith Shaw, North American Securities Administrator Association (NASAA) President and Maine Securities Administrator regarding today’s release of the Department of Labor’s (DOL) rule to amend the definition of fiduciary for retirement advice. The DOL rule ensures that many broker-dealer relationships currently governed by the suitability standard would become retirement accounts and, therefore, subject to a conduct standard meant to prohibit conflicts of interest and require brokers to put their clients’ interests first.

“NASAA has long supported a heightened standard of care for investors and believes that financial professionals should always make recommendations that are in the best interests of their clients. We appreciate that by broadening the application of fiduciary duty, the Department of Labor’s rule raises the standard of care applicable to retirement investors. The need for modernization of regulations governing retirement savings is beyond debate as Americans increasingly turn to individual retirement accounts or employer-sponsored retirement plans to invest for their secure retirement.

“While supporting the Department’s goal of enhancing the standard of care applicable to retirement investors, NASAA recognizes that the rule requires industry members to make changes to processes and systems. These changes will require regulators and industry members to work cooperatively toward the effective implementation of the rule including the continued servicing of smaller accounts. Less prosperous investors need not be abandoned if we work together toward a solution. As we closely review the final rule, NASAA will continue to advocate for additional regulatory initiatives to raise the standard of care for investors in general.”

— NASAA —

For More Information:
Bob Webster | Director of Communications
202-737-0900





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