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Financial Planning Coalition Comment Letter to SEC on Investor as Purchaser Subcommittee Recommendation on Broker-Dealer Fiduciary Duty (PDF)

"We support the SEC staff's recommendation to adopt an over-arching fiduciary duty for investment advisers and broker-dealers if, as mandated by the Dodd-Frank Act, it is no less stringent than the existing standard under the Advisers Act. To achieve this, it is important that a uniform fiduciary duty standard, when promulgated, contain both the rules and practical guidance to clarify how the standard would apply to the broker-dealer business model."

Financial Planning Coalition Urges Improvement to Investment Adviser Oversight

"There is widespread agreement on the need to provide greater protection to American investors from financial fraud. The adoption of a fiduciary standard that includes broker-dealers when providing personalized investment advice would help restore and strengthen public trust in financial advisers -- both investment advisers and broker-dealers. Any legislation that creates additional obstacles to SEC rulemaking could needlessly delay or weaken critical investor protection measures such as the fiduciary standard, however unintentionally."

Two Sides Take Opposing View on Proposed Conflict of Interest Regs

"The old standard, which does not require clients' interests to be the first consideration, is outdated and needs to be amended now, according to testimony given Monday by representatives of the Financial Planning Coalition ... At the same time, the Financial Services Roundtable (FSR) says the new rule is too complicated and will limit investors' access to financial advice. The FSR represents large financial services companies that provide banking, insurance and investment products and services."

Pension Fund Coalition Campaigns for SIFI Exclusion

"A coalition of pension fund representative associations across the U.S. and Europe has urged regulators to follow through with a proposed exclusion of pension funds from designation as systemically important. The joint letter responds to the Financial Stability Board and the International Organization of Securities Commissions' consultation document regarding plans to designate non-bank non-insurers as global systemically important financial institutions [SIFI]. Members of the coalition associations provide retirement benefits for more than 100 million individuals, and represent trillions of dollars in assets."

Coalition Opposes Oregon Proposal for State-Run Retirement Plan for Private Employers

"The American Council of Life Insurers and nine other business and financial groups have formed a new coalition seeking to block the state of Oregon's efforts to create a state-managed retirement savings plan for people who do not have access to a pension, 401(k) or Individual Retirement Account through their employer.... The coalition opposes the legislation because they worry it could force the state's employers to follow [ERISA] and subject them to the fiscal liabilities contained in this law. They also think the state should encourage employers to take part in the private retirement savings plan marketplace ... on a voluntary basis instead of forcing them to take part in a government-managed plan."

Comments to SEC on Duties of Brokers, Dealers and Investment Advisers (PDF)

57 pages. Excerpt: "The fiduciary standard should be no less stringent than the existing fiduciary duty standard ... [and] should be based upon the core principle that, when providing personalized investment advice to retail customers, a financial adviser (however registered) always must act in the best interests of those customers.... The SEC should not delay the adoption of a uniform fiduciary standard while it considers harmonization initiatives."

Testing of SEC Adviser Relationship Summary Form Yields Troubling Results

"[A] mock version of the [customer relationship summary (CRS)] has been published by the SEC. This form has now been subjected to rigorous independent usability testing by Kleimann Communications Group on behalf of AARP, Consumer Federation of America (CFA), and the Financial Planning Coalition.... [T]he groups say the CRS forms are far too complicated to benefit the average retail investor." [Editor's note: relevant links are: proposed rules (471 pages); Appendix A: Form ADV General Instructions; Appendix B: Instructions to Form CRS; Appendix C: Dual Registrant Mock-up; Appendix D: Broker-Dealer Mock-up; Appendix E: Investment Adviser Mock-up; Appendix F: Feedback on the Relationship Summary.]

Why Aren't Advisor Groups More Involved in Efforts by States to Protect Investors?

"State securities regulators have historically been far less conflicted and 'captured' than the SEC, and have been on board with the idea that advisors should manage or avoid conflicts from the beginning. But at present, they don't have anything resembling a unified position on what a fiduciary law should look like. The logical group to propose model state legislation is the Financial Planning Coalition -- made up of NAPFA, the FPA and the CFP Board."

Spending Bill Rider Would Delay DOL Fiduciary Rule by Adding Comment Period

"Lawmakers are attempting to attach a rider to the omnibus spending bill that would require the Department of Labor to publish its fiduciary rule for another comment period before finalizing the rule. The Financial Planning Coalition told members of Congress ... that 'vigorously advocating for a rider on the year-end spending bill ... may sound harmless, but it is not.' Adding another comment period 'will run out the clock on this Administration's ability to promulgate a final rule, which will as a practical matter defeat the rule.' "

Coalition Sues to Stop ESG Rule

"In addition to the 24 states[, other plaintiffs include ... Liberty Oilfield Services LLC [which] sponsors a defined contribution 401(k) plan for its employees ... [The plaintiffs[ argue that the '2022 Investment Duties Rule contravenes ERISA's clear command that fiduciaries act with the sole motive of promoting the financial interests of plan participants and their beneficiaries'[.]" [Utah v. Walsh, No. 223-00016, (N.D. Tex. complaint filed Jan. 26, 2023)]